True. When I started trading I just didn't have the capital to trade futures. Would you even recommend starting in futures to any new trader though?
It's unlikely that a new trader will have the six figure capital needed. TBH most new traders would be better off staying away from leveraged / derivatives altogether. In the US I'd say trade large cap stocks to begin with, though direct investment in stocks in the UK is a tad expensive. GAT
Example an option might be quoted 18-20.5 on ICE.com but it'll be 16-22 on IG. Hard to keep an edge unless you are strangling and holding for a few weeks - not for me.
Thanks all, for the input. Here is something I found on the HMRC site which seems to indicate that capital losses can be carried forward for up to 4 years currently
You do not have to report losses straight away - you can claim up to 4 years after the end of the tax year that you disposed of the asset. That's only a one off for the next tax year though- same with income tax self assessment. I see no use in trying to revenge trade this year, so I'm letting my losses take care of 21/22 when I will trade in size again.
UK spreadbetting firms and brokers are now required by the regulator to offer only 1:30 leverage on the forex majors, 1:20 on almost everything else. I haven't heard this has pushed any established traders out but its certainly a disincentive to the young guys who come in with 500 quid and an attitude. (I was never one of them you understand.......)
Sorry, just to be clear, are you saying that you can carry forward losses For 4 years even if you are subject to income tax and not cgt on your trading?