Spread Betting Tips


Reading a newspaper has never been a better idea, as therein can be found spread betting tips. It is possible to make money from spread betting in all manner of ways in response to news.

The global recession has been good for spread betting, where it is possible to make a profit from falling prices using such companies as Cantor. When the recession began in 2008, The First Post and The Week both reported that British people were increasingly opting for spread betting rather than conventional share trading. Spread betting accounts grew from 1,000 in May 2007 to almost 3,000 in September 2008 at a time when disposable incomes were shrinking.

Gold is regarded as a safe haven, and hit remarkable highs at the onset of the recession. In addition to gold, the most popular markets were crude oil, vulnerable currencies and the Dow Jones and FTSE indices. Spread bettors placed wagers on which currency or bank would be next to fail. The largest bets were placed on Washington Mutual prior to its collapse on September 25, 2008, after which banking institutions suspended all short bets.

Some industries are relatively immune to recession. Pharmaceuticals continue to generate money whatever the economic climate, while debt assistance companies, liquidators and administrators positively thrive. You could always watch who is doing well in your high street, for instance jewellers buying gold from people seeking quick money.

In the United States, surprisingly poor non-farm payroll figures can set off a knee jerk bearish reaction evident in the Wall Street Index. Conversely, if the figures exceed market expectations, prices can rise. Weaker data, however, could foster optimism that the Fed will inject more stimulus funds, which might limit negative sentiment.

With spread betting, it is possible to profit from prices that fall as well as rise. The Eurozone debt crisis is a godsend for financial spread betters. The French CAC and German DAX both rose after the election of the New Democratic Party in Greece. In contrast to others, the party wished to remain in the Eurozone. Investors going short would have profited when Spanish 10-year bond yields rose higher than 7.51 percent, which was itself prompted by fears that Spain would require a bailout. Prices also fell when Murcia revealed that, like Valencia, it had asked for government support in the face of unsustainable debt.

Exchange rates are also heavily influenced by global economic and social events. When China announced that it would loosen its currency peg to the US dollar, world markets rose, as a cheaper renminbi would reduce Chinese exports and increase imports. Southeast Asian currencies rose markedly, and the yen and Australian dollar also benefited.

Current events provide a great opportunity to make money.