Rolling Trading Positions

Question: A spread bet has an end date. if want to keep the bet you roll it over to the next time period.  But the broker has to buy the underlying shares again to re-enter the position.

Answer: If a a spread betting firm rolls over someone’s spreadbet, why would they have to buy and sell the stock in the market?  This is nonsense. If I enter a spreadbet with a spread betting provider for, say £100 per each 1/10th of a penny in the stock price, then the spread betting provider will back that bet off into the market by buying 100,000 shares in the market. The SB provider will sell those shares in the market when I close my spread bet. There is no need for the SB provider to buy or sell any shares in the market as [part of a “rollover”. The “rollover” is just an internal process between me and the SB company, in effect a ruse for the SB company to charge me some more money every month.


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