Most things I’v read online say spread betting isn’t for long term. However in the below situation I’m struggling to see why this isn’t a better way of getting exposure to a company I like.
The company
Market cap ~£70M (listed on AIM)
I believe over 1-3 years it’ll rise significantly
I currently own £20k shares
I don’t believe it’ll drop more than 20%
I’m thinking of upping my exposure significantly and using the £20k as a stop loss instead (say -20%)
Pros
I get more exposure
I am still staking the same money
Cons
If the shares fall below my stop loss (which i don’t think it likely) I’ll lose my position
Im sure I’m missing something and would be great to see what you think?
The company
Market cap ~£70M (listed on AIM)
I believe over 1-3 years it’ll rise significantly
I currently own £20k shares
I don’t believe it’ll drop more than 20%
I’m thinking of upping my exposure significantly and using the £20k as a stop loss instead (say -20%)
Pros
I get more exposure
I am still staking the same money
Cons
If the shares fall below my stop loss (which i don’t think it likely) I’ll lose my position
Im sure I’m missing something and would be great to see what you think?
Is this a bad spread bet?
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