LONDON, July 31, 2012 /PRNewswire/ --
As HSBC announced a sharp rise in its first-half profits, the bank put aside another $1.3 billion to cover potential PPI mis-selling claims as well as $700 million to cover fines relating to the anti-money laundering scandal.
Our top tips for spread betting will look at the news out of HSBC, what spread betting provider City Index can offer you, and how you can take a position on this news with the potential to profit.
Spread Betting Tip: Research
The first step in placing a financial spread bet is to research your chosen market.
In this example, we're looking at spread betting HSBC shares.
As mentioned above, HSBC's pre-tax profit for the first-half of 2012 was $12.7 billion which showed a 11% rise from the £11.5 billion the bank made in the same period last year. The pre-tax profit beat market consensus estimates of $12.5bn, helping to lift the banks shares price in European trading by 1.45%. However, with nearly $2bn being put aside to cover PPI miss-selling claims and the money laundering scandal in the US, this ate into first half profits.
Earlier in July 2012, a US senate report noted lax controls by HSBC which had left it vulnerable to being used to launder money.
Group chairman, Douglas Flint, commented at the time: "HSBC has made mistakes in the past, and for them I am very sorry."
Flint added: "We cannot undo the mistakes but I can assure you that Stuart Gulliver [chief executive] and I are determined, and have made it our most important priority, to strengthen HSBC and reinforce our values."
Spread Betting Tip: Choose a Spread Betting Provider
Spread betting provider City Index offers its clients a range of benefits through their spread betting account.
Take advantage of:
- No UK Stamp Duty of Capital Gains tax to pay*
- Ability to go long or short on a market
- Access to over 12,000 global markets
Find out more and start spread betting today through the City Index website.
Spread Betting Tip: Placing a Spread Bet
You can place a spread bet through your City Index spread betting account across a range of powerful trading platforms.
Access your account fully and securely through the browser-based online trading platform, or via the City Trading mobile app - allowing you to trade at a time to suit you, from virtually anywhere.
To trade on HSBC share price, follow these three steps:
- Log in to your City Index spread betting account
- Search for the HSBC DFT (Daily Funded Trade spread betting market)
- Place a trade whilst considering utilising a guaranteed stop loss order for risk management
Before placing a spread bet, it is important that you have fulfilled the first spread betting tip, i.e. research your market.
In addition, it is important that you have taken advantage of the risk management tools supplied by City Index in order to help limit your losses, these include Stop Loss Orders.
Spread Betting is a leveraged product and can result in losses that exceed your initial deposit. It is important that you fully understand the risks involved.
Find out more about managing your spread betting risk through the City Index website and start spread betting today.
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Read More Spread Betting Tips
If you found this article helpful, you may want to read more just like this. You can access a range of free spread betting tips, guides and articles through the City Index website.
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.
Spread betting is exempt from UK stamp duty and Capital Gains Tax. However, tax laws are subject to change and depend on individual circumstances. Please seek independent advice if necessary.
SOURCE City Index