I have an ISA account and was wondering what inverse ETFs do most of you use and can recommend for shorting. Especially major indexes
I haven’t looked at the CFD account yet, but is there another way of shorting individual stocks there?
Thanks
I believe there are not many of them. I used one for the DAX a while ago, but I switched to CFDs to short indexes.
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Yeah, it would be nice to have more options on this platform. As far as Im aware that’s the only way to short with the ISA/Invest accounts.
When it comes to CFDs I am a bit more weary since they are on margin, but how does one go about shorting on there exactly?
Shorting with CFDs is quite simple.
Short: you execute a SELL order to go short and close the position with a BUY order.
Long: you execute a BUY order to go long and close the position with a SELL order.
It all depends on your strategy if you are profitable. I use Heikin Ashi candle sticks combined with 50 SMA, Stochastic and Average Directional Index. Besides that I keep an eye on the news.
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I see, and thanks for the pointers. I do not know what Heikin Ashi candles sticks do differently, but I’ll look into it.
You must be a day or swing trader. Is there a penalty for holding CFDs though?
So far I’ve been focusing on how to do fundamental analysis and investing, but I am interested in TA and trading, it’s just all very new. And figuring out your taxes must be quite complex
Last year I started trading Forex, which is CFD trading. You can also apply it to other instruments though.
You can hold CFD contracts. Only limitation is that scalping isn’t allowed. So not allowed to close trades within 5 mins after opening them. I usually try to close all of them before the weekend. Just to be safe, anything can happens in weekends.
Here are all the shorting ETFs I could find. One VIX related one in there too.
Screenshots from today, as as the markets dropped you can see there was a bit of cash to be made off them.
Cheers mate, I hadn’t seen the VIX one. I think I’ll use XSPS but I’m not exactly sure what 2x Inverse Swaps means in the case of DBPK
Do you use any of them regularly to short with?
Are you profitable with CFDs? I can’t believe how quickly my money gets basted into dust on that platform. Not a lot of money mind you, just play / pocket money to test it out. I think you need a lot of cash lying in the account to survive the large swings.
yes so far things are going fine. you just have to stick to your strategy. don’t chase trades. Don’t assume the price will move into a direction. Find confirmation on the chart.
Sorry @CaptainDangernoodle didn’t see your question.
With the DBPK one, 2x Inverse apparently means that it multiplies the movements of the S&P by two, inversed. So if the S&P moves down 2%, this ETF increases in value by 4%. At least that’s my understanding.
I’ve made a few hundred off these during the big crash about a month ago. However I’ve stayed away from them recently as the market currently makes no sense whatsoever. For example America might announce 1 million deaths overnight and I wouldn’t be surprised if the S&P gains 10%.
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