Excerpt from: Understanding Spread Betting
|
 |
| June 13, 2007 | | Spread bets on performance | Not all financial decisions and instruments are cut and dry. For example, placing a spread bet on a stock is fairly easy; the value only has to rise or fall to a certain level for you to make a profit. But some spread betting opportunities are more ambiguous. Placing a spread bet on whether Nasdaq would take over the London Stock Exchange is an example.
When Nasdaq was making a takeover bid for the London Stock Exchange, it was possible to place spread bets on the outcome. An indexation company would assign a point value for different outcomes, and often one for the Field. Then, you would place a spread bet based on what you think the outcome would be.
| | |
|
|
