Spread Betting With City Index: The Answer to a Double-Dip Recession?
26 Apr, 2012, 02:00 ET
LONDON, April 26, 2012 /PRNewswire/ --
Spread betting enables investors to take a position on a market that is not only rising, but falling also with the potential to net significant profits.
If an investor expects a market to fall - or if it is already falling - unlike in more conventional trading, they can go short and sell. This means their profits will rise in line with any fall in that market's price.
However, if the market moves against them; they can also lose more than their initial deposit.
UK Recession: What it means
A recession is defined as two or more consecutive quarters of economic decline and on Wednesday 25 April 2012; Britain sank back into a recession once again.
The GDP shrank unexpectedly from 0.2% between January and March this year, which followed a 0.3% contraction in the fourth quarter of 2011, according to the Office for National Statistics.
This is the first double-dip since the 1970s - so thirty years later, how are investors going to trade?
1970s: The Recession and Spread Betting are born
Whether older or wiser, one thing is for sure; there is a new way to trade this time around with financial spread betting.
When compared to Britain's first double-dip recession; spread betting could be considered its slightly younger and more opportunistic cousin.
Where the recession occurred between 1973 and 1975 - spread betting came to fruition just after, between 1975 and 1980.
Whilst the recession set about creating doom and gloom; financial spread betting provided investors with opportunities by offering them the potential to profit from a market that was not only rising, but falling also.
It could be contemplated that spread betting was a reaction to the volatile markets of the early 1970s, or even just a timely coincidence.
What can be said is that spread betting is a way for many investors to take a position on over 12,000 financial markets for only a small initial deposit.
Spread Betting with City Index
Spread Betting provider City Index is one of the world leaders in spread betting and CFD trading with close to thirty years experience, having established themselves within the UK in 1983.
Since then; they have grown to become a leading provider of spread betting, CFD (Contract for Difference) and FX trading.
Launching first with a financial spread betting offering in 1983; they evolved quickly from 2001 to provide CFDs in the UK - and now globally.
To consolidate their position as one of the market leaders; they acquired forex broker IFX Markets and spread betting provider Finspreads.
By 2008, they opened offices in Sydney, Singapore and Shanghai serving clients in the Asia Pacific region and following an acquisition of FX Solutions - a market leader in retail and white label forex services in the US - they expanded their global reach across the USA and into the Middle East.
Most recently, their developments turned to technology in order to mirror the demand for even smarter-smartphones; so in late 2009, the City Trading™ CFD trading and spread betting app for iPhone™ was launched. Since, the app has been developed for Android™ and Blackberry devices - winning multiple industry awards.
Spread betting, CFD trading and FX are leveraged products which can result in losses greater than your initial deposit. Ensure you fully understand the risks.
About City Index:
Today more and more individual traders are discovering the benefits of derivatives, and many of them are discovering them through a City Index trading platform.
As a group, we transact in excess of 1.5 million trades every month in over 50 countries. We provide access to a wide range of instruments including margined foreign exchange, CFDs and, in the UK, financial spread betting.
We constantly look to improve the performance of our platforms and expand our range of services. The result is our customers benefit from innovative trading tools with transparent pricing, competitive spreads, and a high standard of customer support. Visit http://www.cityindex.co.uk/ for details.
SOURCE City Index
Share this article