LONDON April 26, 2012
The UK economy officially re-entered a recession on Wednesday, sending alarm bells ringing among city traders. Data released on Wednesday by the Office for National Statistics showed the economy shrank by 0.2% in the first three months of 2012, after falling 0.3% in the fourth quarter of 2011.
A recession is often bad news for the markets, indicating negative GDP growth and pushing down prices, thus causing uncertainty among traders.
Make money from falling prices
Unlike more conventional forms of trading, with spread betting you can take a position on falling as well as rising prices, thus having the ability to profit irrespective of the direction in which the markets are moving.
All you need to do is determine whether you think prices will rise or fall in the coming days and take a position accordingly.
If you were right and prices move in the direction you had indicated, you stand to make a profit. Remember, however, that you could just as easily make a loss if prices move in the opposite direction.
Spread betting in the UK is currently free from stamp duty and capital gains tax – another distinct advantage over other forms of trading. Remember, however, that tax laws are subject to change and depend on individual circumstances.
* Spread betting is currently exempt from UK stamp duty and Capital Gains Tax (CGT). However, tax laws are subject to change and depend on individual circumstances. Please seek independent advice if necessary.
The company pioneered fully interactive online spread betting in 1999 and continues to invest in technology to ensure that its service remains amongst the market leaders.
SOURCE City Index