Our innovative Rolling Daily Bets provide a cost-effective solution for short to medium term trading. These bets do not expire at the end of the day but are automatically ‘rolled over’ to the next trading day.

Any corresponding orders are also rolled over automatically. An overnight financing rate is applied on a daily basis. The standard benefits of spread betting, including the following, still apply:

• Tight spreads
• Ability to go long or short
• Tax free profits
• Leverage
• Trade indices, equities, FX markets, oil and gold

The morning after a share goes ex-dividend the price of the share will drop by approximately the amount of the dividend. Dividend adjustments are credited to long rolling bet positions and debited from short rolling bet positions held at the close of business on the day before the ex-dividend date.

If you are long (have a 'buy' bet), you will be credited with 80% of the dividend and if you are short (have a 'sell' bet) you will be charged 100% of the dividend. For example if you were long €10 on a share which went over the ex-dividend date and the dividend was 5 cents you would receive 5 cents x 10 x 80% or €40. If you were short by the same amount you would have been charged 5 cents x 10 x 100% or €50.

An index is simply a basket of stocks. So if you have opened a bet on an index and one or more of the stocks that makes up that index goes ex-dividend your account will be credited or debited accordingly. For example a 4p dividend paid by Vodafone, one of the larger stocks in the FTSE 100, may equal up to 8.5 points in the FTSE.

Rolling Daily Bets incur a charge or income for each day that they are held overnight. For a position held on a Friday or prior to a paddypowertrader non-business day, financing will be applied according to the number of days until the subsequent paddypowertrader business day.

For example, for a position that is rolled from a Friday to a Monday financing will be applied for 3 days. Any profits/losses are realised when the bet is closed.

The overnight financing for a rolling position can be calculated using this formula:

Shares & Indices:
The RFR is generally equivalent to the base rate of the underlying currency of the country of the market concerned. If you are long of a share/index contract, this equates to real market cash exposure and so interest may be charged on this cash value for each day that the position is held open overnight. If you are short of a share/index contract, an interest return may be paid on these equivalent cash funds.

E.g. the RFR for a short rolling daily contract on Microsoft may be based on the US Fed Funds Rate minus 2%.

The current Central Bank headline interest rates for the following areas are:
UK 0.5%
Eurozone 1%
US 0.25%

All rates correct at 16th June 2009.

Currencies:
The RFR is calculated as the funding rate corresponding to the 2nd currency minus the funding rate corresponding to the 1st currency.

For example, the 1st currency of GBP/USD is GBP and the second is the USD. Therefore, if USD rates were 0.25% and GBP rates were 0.5% then the RFR for GBP/USD would be (0.25% - 0.5%) = -0.25%

For long GBP/USD, the applicable interest rate would then = -0.25% + 2% = 1.75%.
For short GBP/USD, the applicable interest rate would then = -0.25% - 2% = -2.25%.

Bet unit risk:
The smallest movement on the relevant contract that equates to a profit/loss change that is the same as your stake. E.g. on GBP/USD a movement of 0.0001 in the price would mean a profit /loss shift on your bet of the full stake (bet) amount and so the bet unit risk would be 0.0001.