Excerpt from: Understanding Spread Betting
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| September 20, 2007 | | Placing spread bets that an instrument will weaken | Because you do not actually own anything when spread betting, it is vital to realize that you do not have a vested interest in a stock, currency, bond or commodity doing well if it looks as though it is weakening. Indeed, one of the advantages of spread betting is shorting.
Shorting is when you engage in placing spread bets that a financial instrument will weaken on its market. If you think that a currency will fall, or a stock with drop, you can place a spread bet to that effect. Then, when an instrument does lose value, you come out the winner.
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