Non-Farm Payrolls - The Perfect Opportunity to Spread Bet the US Markets

LONDON, May 4, 2012 /PRNewswire/ --

Swing traders and day trade spread bettors, keen to profit from short-term changes in market prices; will be keeping a watchful eye on the release of Non-Farm Payrolls in the US later today (Friday 4 May 2012).

Industry analysts are widely expecting about 165,000 jobs to have been created in the US economy in April - marking a growth from a surprising creation of just 120,000 jobs the month before.

What are Non-Farm Payrolls?

The non-farm payrolls are an influential monthly statistic released by the United States Department of Labor and count the number of paid employees working part-time or full-time in the nation's business and government establishments.  

Simply put, a positive change in the report indicates an improving economy, spreading confidence and optimism among traders, while a negative or poorer-than-expected figure is widely accepted as an indicator of deteriorating or stagnating growth, thus triggering a sell-off.

Profit from knee-jerk reactions

The non-farm payrolls are notorious for causing knee-jerk reactions among traders, who often get carried away by market pessimism often in the minutes immediately following the release of poorer-than-expected payroll figures.

Disappointing figures have in fact, been known to cause sharp short-term falls in prices, impacting a range of markets including foreign exchange, bonds and stocks. While this may not be good news for traditional shares dealers, sudden swings in market prices can present spread bettors the perfect opportunity to make a fast profit.

Profit from rising or falling prices

Spread betting is especially beneficial during such times as it offers traders the perfect opportunity to profit from volatile market prices, irrespective of whether prices are rising or falling.

Financial spread betting is a tax-free* alternative to more conventional forms of trading, enabling you to take a position on the markets irrespective of whether prices are rising or falling. This means that you speculate and potentially profit even when markets are on the decline. Find out more about how to spread bet with Finspreads.

Summary

The strong correlation shows just how important non-farm payrolls are for equity demand and the health of the US economy in general.

The Finspreads economic calendar offers up to date information on major market moving events taking place in the UK, US and EU, so you can better plan your spread betting trades. Find out more about the benefits of spread betting with Finspreads.  

It is imperative to remember however, that spread betting is a leveraged product and can result in losses greater than your initial deposit.

*Spread betting is currently 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.