Spread Betting Case Study

Client Y is looking to get closer to the markets and explore more of his short-term trading ideas

Client Y has an investment portfolio with Killik & Co through our Advisory Stockbroking service. He wants to look at services that will offer more opportunity to convert his short term trading ideas into rapid action and perhaps offer the possibility of leveraged trading.

He is close to his Broker; they talk about the option of opening a Trading Services account, and Client Y decides to try it. What attracts him is the ability to get closer to the markets, feel more ‘plugged in’ with features like regular ‘Trade Alerts’ directly to his mobile phone via SMS.

Within our Trading Services, Client Y looks at the possibilities of Contracts for Difference (CFDs) versus Spread Betting. Both are high-risk strategies and his Broker takes the time to make sure Client Y fully understands the risks involved. Not for the first time Client Y appreciates the other perspective offered by the close communication he has with his Broker.

After careful consideration Client Y decides on Spreads as gains are tax free under current legislation.

His risk profile is considerably higher but he can look forward to some exciting trading times ahead.

For information about our charges please speak to your Broker.

The Risk Factors

CFDs and Spread Betting are leveraged products and can result in losses that exceed your initial deposit. Trading in these products may not be suitable for everyone, so please ensure that you fully understand the risks involved by consulting closely with your Broker.