Falling Standard Chartered Shares May Offer a Spread Betting Opportunity for UK Investors

LONDON, August 8, 2012 /PRNewswire/ --

Team GB may have outperformed expectations at the Olympics last the weekend, but the last few days have been less than favourable for team Standard Chartered. The bank, which has been accused of alleged business dealings with Iran by US regulators, has suffered shock share price falls of over 24% since the start of the week.

With the scandal threatening to cause more woe for the bank in the coming days, it may still be possible to net a profit by spread betting Standard Chartered shares.

More Woe on the Cards?

Standard Chartered has seen its value depreciate by over £10 billion after being branded a 'rogue institution' by US regulators earlier this week. The bank's state banking license is now under threat and regulators are investigating claims that the bank allegedly hid $250 billion in Iran-related transactions.

On Tuesday, August 7, the bank suffered staggering falls on the FTSE index, slumping to as low as 1092p at one point during mid-morning trading.

Luckily for some investors, it is possible to make a spread betting profit by going long or short on Standard Chartered shares, consequently taking advantage of the additional share price volatility irrespective of whether prices move up or down in the coming days.

As a spread bettor, all you need to do is determine whether you expect Standard Chartered shares to rise or fall in the near future and take a position accordingly. If you expect shares to fall as further reports about the investigation continue to emerge, you would go short (or sell) Standard Chartered shares with a spread betting provider such as Finspreads. Conversely, if you expect Standard Chartered shares to rise, you would open a long position (or buy).

If you were right and Standard Chartered shares move in the direction you had anticipated (ie if you expect Standard Chartered shares to rise and they do, or if you expect shares to continue sliding lower and they do; you would make a spread betting profit. However, if prices move against the direction you had expected, you would encounter a loss.

As spread betting is leveraged, you could lose more than your initial investment and may not be suitable for all investors.

Find out how to spread bet or learn about the benefits and risks of spread betting with Finspreads.

Summary

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

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.