Try FTSE Spread Betting
Posted on 10. Aug, 2010 by Global in Uncategorized
Investors have been starting to pull their hair out again over the last month. They thought that their wealth was on the road to recovery following the recession but movements in the stock market has left them doubting. The FTSE 100 lost over 10% of its value only to recover most of it again.
Are you one of these investors who has seen many of your gains this year wiped out? If you are then I think that you should look to other methods of trading to help to try and make profits. You want a way of benefiting from the volatility we have seen recently and a method of doing that is FTSE spread betting.
If like many people you don’t know a lot a bout FTSE spread betting then I will go through some of the benefits. It is a great way of profiting (or making a loss) out of the movement of market. It is not the price moves of the individual shares that you need to be concerned about, it is how the whole index moves.
The biggest benefit for about FTSE spread betting is that I can trade short. If you feel that the market is about to fall then you can open a short trade. If it then goes on to fall you make your profits. You can use it as a hedge against your other long holdings.
If you are personally paying a lot of tax at the moment then FTSE spread betting offers another real advantage. This advantage is that you don’t have to pay tax on your profits (in the UK). There is no stamp duty when you open a position either.
It is not good news for everyone that they can trade on a margin. Leverage causes massive problems for some people so if you can’t cope with it then you should stay away. If you are able to then you can gain a big advantage from leverage.
If you are comfortable and understand the risks then FTSE spread betting can be great for some people. This type of trading should not be taken up by anybody. Before you try make sure you put your research in.
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