Spreadbetting question

[kraggy]

Hi guys,

No matter where I read about spreadbetting, I cannot find the answer to this question.

Spreadbetting is essentially a bet that a shareprice will go in particular direction. But what timeframe is placed on such a movement?

For example, say I bet that share A will rise in the morning but intially it falls (let's say for the first few mins of trading) but then rises to above the price I bought at. Then, have I won or lost?

If you read the example in the following link, it talks about 2 nights handling fees that are to be deducted from the profits. But if the bet has been held for 2 nights, what if the price had fallen after it went up in the first place if you get me?

http://www.cmcmarkets.ie/en/content/spreadbetting/spreadbetting_examples.jsp?section=long_example

Bottom line is, what sort of timeframe applies to spreadbetting. If i bet tonight on movement tomorrow, when should it happen and can it go in the opposite direction first?

Sorry if this is all over the place. Finding it hard to put into words..

Thanks,

K.

 

[jimbobman]

it all depends on what company you do it with. irish companies tend to rolling bets ( which as you say are subject to handling fees every night). i hate it this way and refuse to pay the fees so i spread bet with uk companies instead where you can open a position on a contract that expires in 3 , 6 or 9 months time (no handling fees then but the spread is slightly wider to begin with ). its your choice. having said that if you email the irish companies they tend to add the contracts you want if you ask them, their spreads are just too wide for me though.