Excerpt from: Understanding Spread Betting
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| November 20, 2006 | | Shorting a financial market or instrument is a spread betting advantage | | When it comes to placing spread bets, there are many advantages. One of them, though, is the ability to "go short." When shorting a financial market or instrument in spread betting, it means that you wager that it will lose value, rather then gain value. You could short the Japanese Nikkei Index, for example, or place spread bets that euro would lose value. When you own shares in a company, you can't profit when it loses value. However, when you place spread bets you do not own what you are spread betting on. Therefore, if you believe that it will lose value, and you spread bet accordingly, you profit as the subject declines. | | |
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