CORRECTION - Finspreads: Spanish Bank Downgrade Causes Fresh Pain for British Banks

British banks suffered a kick in the teeth on Friday as the implications of Moody's rating downgrade of Spanish banks hit home for the first time and investors exited out of UK bank stock trades over fears of more stormy weather coming in from the continent.

Use our following spread betting guide to research the news out of Europe and how you can take a position with Finspreads on British banks.

Negative News out of Europe

By late trading on Friday afternoon, May 18, Lloyds Banking Group had slipped by over 5.7% on the FTSE 100, while Royal Bank of Scotland had fallen by just under 4.5%.

High street retailer Santander UK, the country's fifth biggest high street bank, meanwhile, was dogged by concerns about its future after suffering a ratings downgrade by Moody's.

The credit ratings agency has slashed the rating of 16 Spanish lenders, including Bankia, Spain's fourth biggest lender.

The bank was partially nationalised by the Spanish government on fears that toxic property loans could push it into insolvency.

Take a Short Position on British Banks

If the banking crisis continues to endure, as widely expected, it could push UK banks to touch new lows. As a financial spread bettor in the UK, you could profit from these falling bank shares by taking a short spread betting position with an online spread betting provider, for example Finspreads.

With spread betting, you can go long or short on thousands of financial markets, including indices, shares, currencies, commodities and more.

You simply take a position based on the direction in which you expect a particular market or financial instrument (for example the FTSE 100 index or Lloyds Banking Group shares) to move in the coming days.

Based on your judgement, you can open either a long (buy) or short (sell) spread betting position with Finspreads.

This means that you would buy if you expected the price of your chosen instrument (for instance the FTSE 100 or Lloyds) to rise in the near future and sell if you expected prices to fall. If you were right and prices move in the direction you had indicated, you would net a profit; else you would net a loss.

Summary

Spread betting offers numerous advantages over conventional forms of trading, such as shares dealing, and is especially beneficial during volatile market conditions. Find out more about the benefits of spread betting with Finspreads.  

Spread betting is a leveraged product which can result in losses greater than your initial deposit. Ensure you fully understand the risks before you start trading.

Find out more about how you can spread bet and make tax-free* profits with financial spread betting provider Finspreads.

*Spread betting is exempt from UK stamp duty and Capital Gains Tax (CGT). However, tax laws are subject to change and depend on individual circumstances. Please seek independent advice if necessary.

About Finspreads:

Finspreads is a leading online financial spread betting  firm, offering access to thousands of instruments on the world's financial markets.

The company pioneered fully interactive online spread betting in 1999 and continues to invest in technology to ensure that its service remains amongst the market leaders.