The Effectiveness Of Day Trading
September 16th, 2010
So think about it from the point of a margin on a firm youre interested in, if it was 10% establishing a position of £100,000 would really only require a deposit of £10,000. Any running profits that you make can actually be used as margin to esablish new positions but any losses would have to be made good by reducing your position or by providing extra funds.
While stamp duty of 0.5% on all UK share purchases has in the opinion of make money trading shares and CFD’s trader reduced the cost effectiveness of ‘day-trading’ traditional stocks and shares, both CFDs and spread betting are exempt and this has seemed to add to the appeal.
Entry Filed under: Investing