In this update I’d like to remind you of how your spread betting ledger cash balance — which is not the same thing as you overall portfolio valuation, or your available trading funds — is affected by three kinds of transactions: deals, dividends, and deductions.
I reckon there are still many actual or would-be spread bettors out there who don’t realise that you can receive dividend income from longer-term position trades rather like how you would receive dividends in a conventional share dealing account.
To prove it, I can tell you that my cash balance in the same spread betting account increased by just over £14 today as a result of dividend receipts.
Dividends are really only applicable to longer-term position trades rather than day trades, and those longer term positions suffer from financing charges levied by the spread betting companies in exchange for the leverage they provide.
Today, the same spread betting account cash balance was reduced by a minuscule £0.26 as a result of financing charges (i.e. interest).
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Disclaimer: this posting is for general education only; it is not trading advice.