What do raunchy text messages to your Mrs and spread betting have in common?
Pretty much everything. When you send a text telling your Mrs you’ve shipped the kids out to a sleepover and that she should pick any 3 items from the bottom drawer, spread them on the bed and lick a flame to the bondage candles, you’re pretty much hoping it’s going to go down well.
Sometimes, it just doesn’t.
You hear the term ‘margin’ being referred to all the time when it comes to spread betting. But what, exactly, is it and how does it work?
Let’s start with some context.
Originally published 20th May 2013
The most frustrating thing I encountered when I first started trading was that I was frequently told that I could not start trading properly until I had at least £10,000 saved up and that, even then, I was pushing it.
Well, I didn’t have £10,000 spare and in fact, only had £500. What was I to do? Abandon all hope of escaping the rat race to become a simple trader because I was told to?
Have you ever found yourself second guessing when you should close your positions? I had this very same dilemma today with a position I opened yesterday and although I fretted like a girl about it in the beginning, I’ve found a good strategy to help me choose when to close.