UK 20:22 Wednesday, 23 September 2026
Breaking news and expert analysis on fast-moving AIM and LSE listed shares
Disclosure: The author has a short position in one or more of the shares mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Cripin Odey made headlines back in January when he predicted that we were on the cusp of a market meltdown so savage that would be talked about in 100 years’ time. Odey is smart and presumably has taken out a hedging strategy that will protect his fund from such an outcome.
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Comments
MrContrarian
“a business model which is based on fleecing its own customers has a limited shelf life.”
Don’t casinos do exactly this? Cupid was cheating its clients. There are many customer complaints about PLUS500 but I’m not sure it’s proven that it’s a cheat. It certainly profits from clients’ delusion, as do Ladbrokes, IG and in a lesser way Prada and Patek Philippe.
PLUS500’s compliance shenanigans, accounting wheezes and failures to ‘fess up are far more worrying for shareholders.
Czech Mate (aka Janos)
MrContrarian: a good bookmaker profits from spreads and interest and overround, not from pure client losses. There is evidence that a very significant proportion of Plus500 revenues is from the latter, not from the former.
Profiting from client losses is easy in the short-term, but also dangerous, and reputationally harmful.
MrContrarian
CZECH MATE,
PLUS500 profits from client losses because it doesn’t hedge most positions. Neither do bookmakers. If I bet on a horse at 2/1 and lose, the bookie keeps my stake. What’s the difference?
I suspect most PLUS500 lose gradually on index & FX bets where the spread does the work.
In any case, “the house always wins in the long run”.
elrico
Despite PLUS500’s poor reputation to it’s clients, we see adverts for the company here…how odd and how harmful to shareprophets good rep. It’s a silly mistake, and one that should be rectified ASAP.
TW I agree - They are google fedCzech Mate (AKA Janos)
Mr Contrarian, even in the horses, bookies have a tendency to make their book so that they are indifferent to the actual outcome. Note that I said tendency – they do tend to get hurt when the favourites win, but the odds are set up so that they aren’t hurt too much.
Not much evidence that Plus500 does proper hedging – that would explain huge (but massively risky) revenues and profits.