Quarterly rollover dealing costs

Short term speculation via futures and spread bets exposes you to credit risk, but gearing may be useful and the short term dealing costs are low.

However they are not low once you start to 'roll-over' your position.  At the end of each period - usually every quarter - you have to close the old, re-open in the new, and pay the cost.  This is when (i) the dealers start to make easy money and (ii) many investors exit their positions for the last time - at unattractive prices.

Multiple quarterly dealing costs quickly overtake the single cost of dealing physical gold on BullionVault.

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