Gotta love ZERO RISK in the SP500 = $$$

Brianharvey said:
Depends on how much you choose to trade 'per point'.
Lets use the Dow instead of the spx, as it gets confusing because what the spreadbet firms refer too as a 'point' is usually a tick in the real market.
I just trade for a hobby since I never know where the damn things gonna go (I only have charts/TA which is more or less a coin flip to me), so I trade at just £1 per point on the Dow.
So If I go long the Dow at 25000 and cover it at 25100, i've made 100 points (100*£1 = £100 profit (or about 140 USD))
My dad used to trade £120 per point, so in his case, he'd make £12000 in the above example.

In my real life SPX trade you referenced above, I traded taht for £1 per point and made £100 (because even though it was '10 points' in terms of '10 handles', it was actually '100 points' in spreadbet terms)




Not time constrained. It's much more akin to regular furtures trading than options
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Spread betting is amazingly tax efficient as well. Zero taxes on winnings! I see passive investors, you know those who like to stick it all in an index fund, solemnly using their tax free allowances for the year by investing in ISAs and the like. They could put as much as they liked in a spread bet account, who cares about the limited tax advantages of ISAs!
 
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