Spread Betting - An Unconventional Way to Profit from Falling Markets
LONDON, May 18, 2012 /PRNewswire/ --
The current financial crisis has been dubbed as the worst the markets have seen since the 1930s, forcing traders to innovate their trading strategies in an attempt to avoid getting caught out by the eurozone storm.
As a swathe of mixed economic data out of the UK, US and eurozone hits the markets, stock markets globally have experienced significant prices swings. Traders are increasingly finding themselves gasping for breath as conventional strategies, which worked perfectly well during stable market conditions, fail to net them a profit in current conditions.
Profit from falling markets with spread betting
Financial spread betting is an excellent alternative to conventional shares trading, enabling traders to profit when market conditions are volatile, such as the present.
With spread betting, you can profit not just when the markets are rising, but when prices are on the decline as well. This means that as an investor, you stand to make a profit from the current 'doom and gloom' scenario - you only need to determine the direction in which prices will move in the coming days. If you were right and the markets move in the direction you had indicated, you make a profit. For example, let's say that as the Greece crisis worsens, you expect the FTSE 100 to fall as investor pessimism intensifies. If you were right and, say, a barrage of negative economic data drives down the FTSE in the coming days, you stand to make a profit; else you net a loss.
Opening a spread betting account with online providers such as Finspreads is easy. Find out more about how to spread bet with online providers such as Finspreads.
Summary
As a popular alternative to conventional forms of shares trading, spread betting enables you to speculate on the price movements of over 12,000 markets, irrespective of whether prices are moving up or down. Spread betting offers the additional advantage of tax-free profits*.
Learn more about spread betting with 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.
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