Spread betting questions from Beginners, Advanced and PRO Traders!


If you have a spread betting question that we have not already addressed please submit it to us. Please note that our experts will only answer questions that are new and of general interest.
Q.
When are dividends paid out?
Q.
When buying shares how long do I need to hold them to receive the dividend payment?
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What about the dividends you will go without? If a company awards shares over cash, does your position increase?
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I still can't understand how dividends are accounted for in spread betting?
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But why do most spread betting providers pay out only 80% of dividends?
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If spreadbetting is tax free and as you said, you are not trading the underlying market, but a 'shadow market', then why do I have to pay a 20% tax on dividends, since this is not a real dividend from the company?
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I know that spread betting providers only pay 80% to 90% of dividends - who gets the remaining 10% or 20% - the providers? the government?
Q.
Opened at 174 at 15 a point. Cash price at 200. So why isn't my gain showing as (200 - 174) x 15??
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When a company unexpectedly announces either a dividend cut or that it is not paying a dividend at all what happens to the spread betting price?
Q.
I called to ask 'IG work out their FTSE price differently than us'...40 points difference???!!
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I'm aware that dividends are paid out on FTSE rolling daily positions but are these also paid on the Dax rolling daily? - if not why not?
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And what happens if a stock splits? Is this reflected in your position?
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As far as I can tell you get no benefit of dividends in a spreadbet...?
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What about consolidations? How are they accounted for?
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I have a long spreadbet on SCHE, which seems to be attracting rumors of a possible takeover...
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Should I take up a rights issue?
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How do I calculate the theoretical price of the shares after a rights issue?
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Can you give me an example of a spreadbet involving a rights issue?
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All I know and care about currently is that in taking up the Ladbrokes rights issue, the rights issue value has increased by almost 30%!!!
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Are investors worse off after a rights issue has been completed?
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What is the difference between a placing and a rights issue?
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What happens with spread bets when a rights issues occurs?
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What happens if I placed a spread bet and the company is suspended?
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I have a query regarding debt-for-equity swaps - how do they impact an existing spread bet?
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If I wish to trade a contract not currently showing on the provider's platform can I put in a request?
Q.
How are the Daily FTSE and Wall Street prices calculated?
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I still don't get it - how is a FTSE/Dow Future spread bet priced?
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Why are the prices quoted by spread betting companies different from what I see on the live-feed screen?
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Why do spread betting providers use the futures and not the cash price to price the bets?
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Why do the Futures update more frequently than the Cash Index?
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Why is there a different level in the underlying? Or do they use different assets?
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Which spread bet companies support betting on far-out futures?
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I noticed that the FTSE daily is open on IG before even the UK market was open?
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I just can't get my head around the out of hours trading on the Daily FTSE...
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What happens in the FTSE during 7-8am and 8-9am, is it something to do with market makers setting prices?
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24-hour dealing not...I can't seem to place say a bet on the FTSE when both the FTSE and DOW indices are closed?
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Can you let me know the implications of trading markets out-of-hours?
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Why don't spread betting firms allow trading on the FTSE 100 shares round-the-clock in a similar way you can do with indices?
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But I've seen one company on AIM last night - how do people go about making deals after the bell/before morning bell as it shot up 30% at about 7:55 this morning?
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IG Index - why do they quote after hours spreads based on the closing price, rather than the bid/offer?
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How do CMC calculate their rolling cash prices 1.) during market hours 2.) out-of-hours for the FTSE?
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I use eSignal software and follow the DJIA to place bets using Finspreads Wall Street Daily cash index which (apart from their bias) closely matches the real prices on the Dow. I want to be sure the market I'm trading in is the one I'm watching on my real-time charting software.
Q.
I'm trying to test a system based on the FTSE but am concerned with the capability of spread bet platforms to get these filled at these exact prices...
Q.
Can you provide a little more information on 'fair value' as mentioned above?
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On TV I see quotes like Dow Futures up 18 points and Fair Value up 8 points. What is 'Fair Value' and how is it calculated?
Q.
ETX Capital are quoting the September google stock contract at 4329 - 4349 but the real price of google is about 428.75!?

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