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Old 04-06-2008, 07:07 PM
thrunner thrunner is offline
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Re: Trading COMPX

From what I've read, spreadbetting was invented in the mid 70s in the UK and is probably not available for someone in the US. It is a kind of derivative with leverage, but how the derivative is calculated, I am not sure. With options, you have the Black-Sholes calculations but with spreadbetting, it is up to the broker? to set the price. I read somewhere that 90% of spread betters lose money. The COMPX index which is the US Nasdaq index that can be represented by QQQQ as the ETF. There is also NQ as the index futures and plenty of derivative options based on QQQQ. I don't think you can spreadbet on NQ or the QQQQ options, so perhaps QQQQ is what you will be spreadbetting on.

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