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Hectorp - Fri, 29 Dec 06 :

Of course people trading on these short time 'loan facilities' from their Brokers have less say in how to manage a particular shareholding. If they dont come good in the 10 or 20 days time you have , you are stuffed as you must make a decision. Not only that but the Market Makers often know that a T-date is approaching and alter the price against you knowing you will be a forced seller. Of course you can always pay for the shares outright by settling before your expiry date too.
But basically people trading on borrowed money including spread bets are in a risky world compared to those who have their onn funds to buy and hold.
- old fashioned view? maybe, but I usually do so.


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