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  1. Z

    Is financial spread betting gambling or investing?

    Bye H. I enjoyed it too. I wanted to contribute due to the idea that some thoughts may help somebody. It is very hard to talk against the Wall Street, TV and all that sales hype (here you have people that still believe them). Do not forget what is good for these blood suckers is not good for...
  2. Z

    Is financial spread betting gambling or investing?

    Future market prices are reacting faster then regular spot prices on the stock market. Some strategies are even exploiting such fact. Spread betting is probably following closely futures market. Futures market is not following closely regular market as we proved it. I just read the prices again...
  3. Z

    Is financial spread betting gambling or investing?

    So, your long term buy&hold strategy is to do arb? Or to go short? I just do not get it what you are talking here. We are calculating the price of being long and I showed you the mathematics. Show me the mathematics that your pick Euro 50 is not with the premium of 7% per year. You need to...
  4. Z

    Is financial spread betting gambling or investing?

    My calculation was very precise. I just went to IG Index spread betting that I have an account with. I also get the spot price from the yahoo finance: http://uk.finance.yahoo.com/q/bc?s=%5ESTOXX50E You can see exact figures in my formula. You can do it yourself for today's prices. After...
  5. Z

    Is financial spread betting gambling or investing?

    OK. So let see what we have on IG. MAR-08 sell/buy is 3818.5 - 3820.5 - so the spread is around 0.05% as you said. The spot price is around 3765.5 so you are paying 55 points between buy MAR-08 and spot price. The number of days till MAR-08 future is finished and needs to roll over is around...
  6. Z

    Is financial spread betting gambling or investing?

    I need to agree that if it is not priced properly somebody may arbitrage it. The only thing is that money market or bond market you invest your money needs to beat that "cost-of-carry". I see your point in comparing it to QL as their charges are too much. Vanguard charges for Europe is more...
  7. Z

    Is financial spread betting gambling or investing?

    Do you know why is Eurostoxx 50 future that cheap at the moment? Did you look that top 10 dividends companies in such index are giving from 3.4 to 6.1% dividend. I do not think you did your mathematics properly. I am invested in Euro passive index with IL for 0.75% in my pension and that is...
  8. Z

    Is financial spread betting gambling or investing?

    Sorry Harchibald. I know both of us are trying to do something meaningful. I think we should agree that neither of us is with good knowledge of futures market so we are going around. It is for a sure very complex and believe me it is looking great now as the market is in tumble and futures are...
  9. Z

    Is financial spread betting gambling or investing?

    If you split the investment period in 4, 16 or 100 pieces where you need to settle it in real money without the ability to choose is it good or bad moment to settle it is not the same as doing nothing and having paper losses. Also relying that the money market will cover your future premium you...
  10. Z

    Is financial spread betting gambling or investing?

    This is an easy link to read some facts about investing and read what some big names as Buffet and others has to say for individual investors: http://www.ifa.com/12steps/
  11. Z

    Quinn Life v' Interactive Brokers - Interactive Brokers cheaper 4 portfolios > €8,184

    Re: Quinn Life v' Interactive Brokers - Interactive Brokers cheaper 4 portfolios > €8 That is a very good point. You loose on the money conversion and transfer. You usually pay around e20-30 on transfer + euro to $ conversion spread. Also the risk of being invested in $ (that may be a plus...
  12. Z

    Is financial spread betting gambling or investing?

    I agree that QL freeway funds are passively managed but their charges are like active management funds. Huh, you are putting me in the bad position to choose between two brokers who are charging a lot :) I assume that is one of the reasons why spread betting is so popular too. I hope that...
  13. Z

    Quinn Life v' Interactive Brokers - Interactive Brokers cheaper 4 portfolios > €8,184

    Re: Quinn Life v' Interactive Brokers - Interactive Brokers cheaper 4 portfolios > €8 I agree that charges in Ireland on passively managed indexed funds (trackers) are crazy. That is the reason I did move my money outside the pension to the US broker where I bought cheap ETF's (mostly from...
  14. Z

    Is financial spread betting gambling or investing?

    They do not for the futures. The futures charts are just showing the period that future covers (e.g. 3 or 6 months). You have no clue what was the historical price so I cannot for example prove to Harchibald that this strategy did not work in the past. Also, do not forget that spread betting...
  15. Z

    Is financial spread betting gambling or investing?

    So, how you are going to beat my e1000 I put into the pension. You have either e800 or e550 after tax. So, how are you going to beat my e1000. Tell me such investment. I know the answer, it is spread betting :) OK, now. I have e1000 after tax and I invest into world marker index. You do the...
  16. Z

    Is financial spread betting gambling or investing?

    It is not if you own the market through the passive (cheap) indexed managed funds/ETF's. You need to own it for at least 10-15 years to get the equity risk premium (to profit from the stock market) for a sure. You shoul dnot be paying CGT if your money is invested through the pension as it...
  17. Z

    Is financial spread betting gambling or investing?

    OK, so you are actually removing the cost due to the money market profit on the rest of the money. Would you show me the long term formula for this? I am just saying that from the short term perspective (6-12) months that looks profitable. The problem is you have no clue what will happen with...
  18. Z

    Is financial spread betting gambling or investing?

    I did not understand where did you find .1% and .2%. As I said charges are around 3-7% per year for me. The similar is in Pryor's book when he compares spread betting with long term stock holding. Just he did not elaborate all cases when the stock is going down, compounding and so on. We need...
  19. Z

    Is financial spread betting gambling or investing?

    I think nothing is this cheap. The major cost for non leveraged positions is the difference between buy price of future and the current spot price. That is the price that you need to beat to earn money from the stock market. E.g. buy price for EU Stocks 50 is 4031.5 and the current price is...
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