Spread Betting Currencies Sees Traders Profit as Euro Tumbles Lower

LONDON, June 12, 2012 /PRNewswire/ --

As traders choosing to spread bet currencies profit from the falling Euro we look at how you can take a position with Finspreads.

Introduction to Spread Betting the Euro

The eurozone crisis is continuing to give financial investors sleepless nights, with many now treating the possibility of a broken eurozone as a very real prospect.

The eurozone crisis is undoubtedly bad news for most, but for a few, this could present the ideal opportunity to net a potential profit as the euro tumbles to its grave.

How to Spread Bet the Falling Euro

Currency spread betting is an excellent alternative to conventional trading, enabling you to make a profit as the euro falls against currencies including the US dollar, British pound and Japanese yen.

With spread betting, all you need to do is take a position based on whether you believe the euro will rise or fall against a chosen currency (example USD or GBP) in the near future.

For instance, let's say that you believe Spain's credit rating downgrade to BBB by ratings agency Fitch on Thursday June 7 2012, will push the euro even lower against the US dollar.

Keeping this in mind, you decide to go short (or sell) the euro/US dollar currency pair (EUR/USD). If you were right and the euro weakens against the US dollar in the coming days, you make a profit. Otherwise you make a loss.

Conversely, if you believe that weak economic data out of the US will add downward pressure on the US dollar, thus pushing it lower against currencies including the euro in the short term, you could choose to go long the euro/US dollar currency pair (EUR/USD), meaning that if the euro appreciated against the US dollar in the coming days, you would make a profit; else you would make a loss.

You can find out more about how to spread bet currencies through Finspreads.

Why Spread Bet Currencies?

Spread betting currencies offers numerous advantages including tax-free profits*, leveraged trading and the ability to go long or short.

Spread betting is a leveraged product which can result in losses greater than your initial deposit. Ensure you fully understand the risks before you start trading.

*Spread betting is currently 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 provider, 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.

SOURCE Finspreads

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