The June issue of Talking Options is now available for download.

This month we discuss spread betting financial options using real trades.

Over the years a number of retail traders have been dissatisfied with spread betting as a mechanism for trading the market, particularly when it comes to trading financial options. Complaints have ranged from unacceptably wide bid–ask spreads to stale, uncompetitive prices being quoted when the spot price has moved in the retail trader’s favour and against the spread betting firm. Spread betting firms, it is said, make it difficult for traders to take profits. I remember the case of a trader who did not realize any gains from his FTSE back-month straddle when the spot have moved appreciable. He has since left spread betting activities convinced there was a conspiracy to defraud him.

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