I didnt go into detail just suggested to the guy that he open a fantasy portfolio somewhere first like advfn.com as it's not something to jump into without knowledge.
I used to trade financial futures and options on liffe I also traded cfd's and shares once liffe went screen based.
An example.
If you buy shares you will also be charged brokerage and stamp duty (0.5%)
e.g. buy 1000 shares at £1 = £1000 + Bro (say £10) + £50 = £1060
so if you only speculate £1000 and the stock moved 10% (big move) you would sell at £1.10 = £1100 - bro say £10 = £1090 = £30 profit.
Not really worth the risk is it?
You need some decent money to actively trade.
Shares you cannot go short i.e. bet on them going down, unless you borrow the stock first.
cfd's are synthetic shares. You can buy or sell and can gear up too but are more risky. You can open an account at my company for £10k
But you can gear up which means you can buy/sell more shares as you only pay a margin therefore can buy more than £10k worth of shares. Risk is you can lose more than your £10k. Similar to spreadbetting.
Also you dont pay stamp duty on cfd's or spread betting.
I've probably bored everyone bar us. I would advise reading up and doing the fantasy bit first.
I stick to betting on the dogs and seem to do better at that!
