Short/ Long in Stocks and shares ISAs

Hi, I am a newbie to trading at UK Trading212. I would like to know if I can take short/ long positions on stocks with leverage? I do not want to dabble with spread betting/ CFDs at the moment. Thanks in advance.

Not that I’m aware of. Only option for this is via CFD mode

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You can use leverage with these to short in Invest?

Only Longs with leverage. Currently.

@Oktay is the right person to answer future possibilities

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@Vedran - Thanks for the tag :slight_smile:

@jostep @Cashurkash Indeed, these -1x products essentially provide a short position. Please keep in mind, though, that they are rebalanced on a daily basis - meaning holding over long periods may not provide the exact returns you expect (as you can see in the other thread that Vedran tagged). Current Leverage Shares products have leverage factors of 3x, 2x, and -1x.

For now, to be honest, there is no plan to add other leverage factors to the short side (like -2x, -3x, etc). The reason is that there are many companies with still depressed prices - so if the underlying stock rises a lot over the course of a day or more, the leveraged short product could be wiped out (we are generally optimistic about these big name stocks).

Graniteshares, on the other hand, has long (3x) and short leveraged (-3x) products: maybe this is more suitable if you’re looking for short leveraged exposure.

Please be careful and make sure you understand how leveraged ETPs differ from CFDs before investing. You can see what happened to 3SRR in the forum with a simple search.

Hope this helps. Let me know if you need more info.

Of course, any new ideas are welcome - feel free to message me if you have any :wink:

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Do you know how these daily stocks work with t212 and thier position that isa/invest accounts are not for day trading.

The t&c mention buying and selling instruments on the same day repeatedly as being against the rules but that’s what you have to do with these ?

I mean is it flagged for a human who will realise or is there some bot that will lock the account untill you phone up or somethint

Makes sense. T212 is basically an investing platform. I know a YouTuber who uses stocks and shares ISA to buy penny stocks and sells them off for a profit of about roughly 12% in four months which translates to 3% a month. But whereas, a day trader looks to make a daily profit anywhere between 0.5-1% by going long or short. Leverage on equities makes the day trading even more interesting. With a 5x leverage you can turn a mere 0.5% profit to 2.5% and same is true vice versa for the loses. If you know have a solid day trading strategy, leverage and risk management, making 2.5% every trading day is possible.

At the moment leverage for retail traders like you and me are being offered in spread betting / CFDs and they are very different from trading the underlying asset itself. I know traders are lured into these products as being close to day trading. The price of an underlying asset in proprietary trading platforms like T212 are different from the one in live markets. You cannot enter a position you want to at the current market price but rather only after certain points/ pips set by the broker and a lot can happen to the price in that gap (spread). That’s the reason why most retail spread betting/ CFD traders loose their money. I wish leverage is introduced in equities trading as they do in some other countries.

Because going ‘short’ and using leverage are considered complex strategies, the recommendation is that investors should not hold longer than a day.

That said, anyone is free to hold them as long they see fit for what they’re trying to achieve.

Yes I know that but t212’s terms and conditions say I shouldn’t be buying and selling the same stock in the same day

I’m asking if there’s an exception or is it just chance till you trigger the day trading detection software

Maybe you’re referring to the PDT (pattern day trader) rule? But I don’t think this applies to non-FINRA (non-US regulated) brokers like Trading 212…

I could be wrong though, maybe someone from the T212 team can help here.