Think About Ftse Spread Betting

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.

If you are one of those investors that just have long positions then what can you do? Too many people have written that buy and hold strategies are dead for me to believe that to be true. I do feel that you should be looking to benefit from this volatility and one way to do that is through FTSE spread betting.

If you haven't heard of FTSE spread betting then I will explain a little about it now. It is a great way of profiting (or making a loss) out of the movement of market. You don't have to worry about individual movement of shares, just the market as a whole.

One of the biggest advantages of FTSE spread betting is that you can go short. This means that if you think the market is going to decline, you can take a short position and if you are right you can make a profit. This is a great way of hedging your other long positions that you have.

If you are making enough profits to be paying capital gains tax on your other investments then there is another reasons why FTSE spread betting might appeal to you. You don't have to pay taxes in the UK on your profits and it doesn't matter how much you make.

Being able to trade on a margin can be either good or bad. Leverage causes massive problems for some people so if you can't cope with it then you should stay away. If you can then leverage can offer a real advantage.

I hope you can tell that FTSE spread betting may be useful to you as an investors. That is not a recommendation that you should do it as it is not suitable for everyone. Make sure you know the risks.