London, United Kingdom — June proved to be a bullish month for stock markets, with investors buying back into the market after three previous months of declines as Central Banks looked to stimulate a slowing global economy.

In June, the FTSE 100 gained 251 points or 4.7%. However, having hit resistance at the 5700 level at the end of last week, will the FTSE’s charge start to run out of steam? By close of play in the UK on Friday (July 6), all the major indices were firmly in the red, with the Dow Jones leading the way as it fell by over 150 points (over 1%) by 4.40pm (BST). Major indices in the UK and Europe recorded falls too, with the FTSE 100 shedding 30 points and Germany’s DAX 30 sliding by over 125 points to close the week at 5662.6 and 6410.1 respectively.

Luckily for some, spread betting is a viable alternative to conventional trading, making it possible for traders to profit from rising as well as falling markets – an excellent option during volatile market conditions such as the present.

More falls expected this week?

Last Friday’s dip in market sentiment was caused largely by the release of worse than expected non-farm payroll data in the US, which showed the country’s unemployment rate remaining unchanged at 8.2% in June but the number of new jobs was disappointing, with a total of 80,000 new payrolls being added to the economy against expectations of 90,000. Private payrolls also failed to recover, adding just 84,000 jobs against expectations of 102,000.

In the UK, meanwhile, the Barclays Libor scandal continued to fray nerves after the Serious Fraud Office launched an official investigation into the rate-fixing controversy.

Globally too, sentiment was sombre, with International Monetary Fund chief Christine Lagarde revealing that the IMF will be revising its growth forecast for the global economy lower from the current 3.5%.

With spread betting, it is possible to profit irrespective of whether the markets are moving up or down, meaning that traders can net a profit even when markets are on the decline.

All you have to do is determine whether you expect market prices to rise or fall in the coming days. If  prices are expected to rise, one should take a long position and if the prices are expected to fall, one should go short.

Spread betting is a leveraged product which can result in losses greater than the initial deposit. Individuals should be sure that they fully understand the risks.

*Spread betting is exempt from UK stamp duty and Capital Gains Tax (CGT). However, tax laws are subject to change and depend on individual circumstances.

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As the FTSE 100 fell 5.5% last year, investors turned to spread betting [http://www.cityindex.co.uk/spread-betting] with the hope of gaining from the falling markets and this has continued in 2012.

As global stock indices fall, savvy investors saw an opportunity as they rushed to short sell stocks and indices in hope of profiting on these falls by spread betting on further misfortune.

Whilst today traders insist that there is money to be made from plummeting stocks as much as rising prices, in truth the tactic can still be somewhat difficult to get your head around, with many investors heads ingrained in the notion that you can only make money in a bull market.

Watching the Market

Only recently have investors been able to speculate more easily on shares, particularly those that are falling. With the arrival of innovative and accessible online trading tools [http://www.cityindex.co.uk/trading-platform/online-trading-platform.aspx] and real-time financial news and charts – speculating has opened up opportunities for ‘going short’ on the market.

Through City Index [http://www.cityindex.co.uk ], investors can access an online trading platform, allowing them to:

• Place trades securely from their computers 24 hours a day
• Access over 12,000 markets including global shares, indices, forex, commodities, bonds and options
• Instantly access real-time financial news and analysis feeds from Dow Jones Newswires
• Access the City Index interactive live charting package which includes a range of technical analysis tools
• Create multiple watch lists to monitor potential future trades

Going Short In a Bear Market

Because spread betting [http://www.cityindex.co.uk/spread-betting/spread-betting-features.aspx] allows you to profit in a falling market by going short and selling, it has proven to be incredibly popular for trading in a bear market, such as this.

If a spread bettor is able to interpret the signs and then react quickly enough, a falling bear market can be every bit as profitable as a rising bull market.

Joshua Raymond, Chief Market Strategist at City Index said “this is what makes spread betting so flexible. No matter which way the market is going, there is always the potential to make a gain.”

Alternatively, traders can open buy positions with the markets at what they perceive to be their lowest point to capitalise on the market recovering and profiting as prices rise.

Summary

Investors who see an opportunity to profit from a fall in global stock indices such as the Dow Jones index or FTSE 100, could profit from this by short selling these markets through spread betting. However, spread betting [Speculation: Spread Betting On the Falling Market to Profit appeared first on The Toonari Post - News, Powered by the People!.

Expatriates of all nationalities, wherever they are living, will probably have experienced some unpleasant ups and downs with their investments in 2011. Cast your mind back to December 2010 and analysts from UBS were forecasting the FTSE would finish 2011 at 6700, whilst Seven Investment Management went for the sinister sounding 6666.

Many other brokerages forecast the UK market would finish 2011 in a range from 6200 – 6700. Actually, it finished the year at 5572, considerably adrift of the views of many of the experts. With such uncertainly stalking the London and other major global markets, Offshoreonline.org has put together six simple tips for expatriates to help them weather 2012:

1) Get a heath check on your pension and investment portfolio. Volatile stock-markets have made many worried, so clients will want to know their portfolios are well balanced and prudently invested. If all markets are going down, it is likely many portfolios will suffer, but unless you are holding good quality funds, you risk missing out on any upturn when it eventually comes.

Use a UK-regulated broker such as Offshoreonline.org to provide analysis and advice to both those holding a portfolio and those considering new investments.

2) Diversify. Consider quality property. In the year to November 2011, Greater London property prices still managed to advance by 1.4% on average and with rental yields of 5% available in quality locations, that added up to a valuable combination for clever buy-to-let landlords.

3) Use a property search agency to help build your portfolio though, as averages hide the detail. Whilst quality areas such as Wandsworth, Wimbledon, Westminster  (up 7.1%) and others all advanced, many areas in the East of the capital which up to now may have benefitted from the Olympic effect dropped back, some by over 2%, according to search experts Expatfindaproperty.com

4) Consider overseas property too – French real estate has weathered the storm well, particularly in areas such as the Cote D’Azur. Here good quality new homes can be purchased which make ideal rental projects with strong all year round corporate rental demand reflecting a busy conference and cultural calendar incentres such as Cannes, according to Newfrenchrivierahomes.com

5) Check your existing mortgage rates. Many expatriates will find fixed rate contracts coming to an end, but may not have wanted to move mortgage provider. There are still good deals to be had, particularly where the loan represents less than 70% of the value of the house.

6) Check your insurance. Are life and health insurance policies up to date? Going in to 2012, the last thing you want is an expensive medical bill to pay. Get a quote – on average 50% of expatriates do not have any cover – but with apparently mundane complaints such as a trapped nerve in an arm potentially costing over GBP36,000 to treat, annual cover can look very attractive. Modern plans often offer discounts of up to 50% of premiums for those happy to take on an excess, so budgets can be managed.

Above all though, the message is be proactive. Take an interest in your finances and make sure you are on top of the detail to avoid nasty shocks down the line. Plan for the worst, hope for the best.

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