- PPF Points
- 314
regarded as "gambling" so tax free. Apparently 'they' could, but never have, chased anyone using it as a career.
While the Spy is running say 25%, you could bet eg (ignoring extra margin requirement) 20k on margin at 5:1
Your 100k becomes 125k in a year. With a swap rate a couple of % over base, say 7% (is that fair?), you gain 25-7 = 18k.
There's a spread in there, maybe some small costs... (I don't have a SB platform, I'm thinking of IG now Capital is shut) so it's approx
90% return in a year tax free, what am I missing?? Why is this not a standard strategy?
(Perhaps Options would make more sense, I don't know enough about them. )
25% may take a hit, but some bonds have beaten that
While the Spy is running say 25%, you could bet eg (ignoring extra margin requirement) 20k on margin at 5:1
Your 100k becomes 125k in a year. With a swap rate a couple of % over base, say 7% (is that fair?), you gain 25-7 = 18k.
There's a spread in there, maybe some small costs... (I don't have a SB platform, I'm thinking of IG now Capital is shut) so it's approx
90% return in a year tax free, what am I missing?? Why is this not a standard strategy?
(Perhaps Options would make more sense, I don't know enough about them. )
25% may take a hit, but some bonds have beaten that