Reliable Spread betting guidelines: Investors wary of Spanish Bailout
In the early dawn of Monday morning’s trade, the July 23 trading activities were met with near disastrous results as the FTSE 100 fell down 75 points while on the other hand the Spanish 10-year bond yield deferred well over 7.1 per cent.
As the United Kingdom’s index went further down, traders and investors who went short for selling the FTSE 100 through their individual financial spread betting accounts with many highly credible spread betting firms have a high probability of profiting from their investments. We look at some reliable ways as news out of Spain being not too profitable to take a position on over 12,000 financial tools with the probability for profit regardless if they rise or fall.
Spanish Bond Yields hit the highest limit on record
As fears slowly rise over Spain’s situation being one of Europe’s largest supporting economies will ultimately be needing a bailout scheme with its 10-year bonds hit its highest record of 7.51 per cent last Monday July 23, 2012. As the market plummeted on Monday’s opening, the FTSE 100 went down 1.5 per cent to 5566 points trading down 1.6 per cent by 9:47 BST.
How to beat the market from a Falling Index
With a good financial spread betting account, you can definitely take a good and advantageous position at any given market with the possibility to earn profit albeit the precarious rise or fall. Unlike those investors who traded the FTSE 100 through traditional means, at a time such as this one the FTSE 100 is very well regarded and proven to be profitable.
When a market is set to fall, the trick is to go short and sell the principal market. In the likely event that your instinct is correct then consequently the market moves in favour of your position. You will then earn profit in the line with every point that the market falls. On the other hand, should you speculate that the market will rise; you can go long and purchase. Once again if the market moves in your favour, you will still profit with every point that the market rises.
It is prudent to consider that should the unlikely event that the market move against your position, the losses you will likely to incur will be far greater than your preliminary deposit which accounts as a small percentage of the total value of the principal market.