Markets based on stock indices offer many interesting trading
opportunities. You are able to take positions on whether an index
will rise or fall over a period. This can be useful if you don't
have a view about specific shares but feel that the market as a
whole will move in a certain direction.
- If you think a particular market will rise over your time
horizon, you can place an up bet (buy)
- If you think a particular market will fall over your time
horizon, you can place a down bet (sell)
For instance, if you have a share portfolio and are worried
about the market going down in the short term, it may be cheaper
and more efficient to place a down bet rather than sell the entire
portfolio. This potentially avoids capital gains tax, brokerage and
other charges. A reduction in the value of your portfolio may be
partially offset by the bet with City Index if they move in the
same direction.
We offer a range of leading stock indices on the Limited Risk
Account:
- Daily FTSE
- FTSE Future
- Daily Wall Street
- Wall Street Future
- Daily S&P
- Daily DAX
- DAX Future
- Daily CAC
- CAC Future
- Daily NAS
- NAS Future
Daily Rolling Bets
Rolling
bets have been introduced to provide a product with pricing more
closely representative of the underlying index market price
compared to our Index "futures" products, which include the cost of
funding and dividends and may therefore look quite different to the
underlying Index price.
The normal advantages of spread betting still apply, namely
tax-free* margin trading and the ability to bet on prices rising as
well as falling.
Rolling bets can be opened and closed at any time during normal
trading hours.
Open positions held over night will be closed and re-opened at the
same price, being the end of day valuation of that market. This
will have the effect of realising any profit or loss on your
position on a daily basis.
Financing charges and any adjustments to reflect dividend payments
are levied as appropriate.
* Refers to UK Capital Gains Tax regime which can of course
change.
Financing
and dividend adjustments on daily rolling bets
Back to Limited Risk Account
Markets page 