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!.

Over the past year, gold prices have shown an upward tendency but still there is no sign of relief in the markets. Recent debt crisis in Europe and the troublesome turn of events in the United States has again brought the attention of global investment community back to gold.

According to the Wall Street Journal, gold prices have rallied 25 percent this year as the risk appetite of investors has declined in the so-called safe havens of investment like treasuries and dollar.

The global economic environment is very uncertain with mounting debt debacles in the Euro zone leading to stringent austerity measure that eventually led to the weakening of Greek, Portuguese, and Irish economies. According to Mitsui Precious Metals analyst, when a metal has four to five distinct reasons to grow in value it would be foolish to not be bullish on it.

In recent weeks, gold has jumped nearly 8 percent, biggest rally since November 2008, for three days. Yellow metal gained $132.50 or 2.4 percent after downgrading of US credit rating by S & P from AAA to AA+.

Gold prices continued to boost when the Federal Reserve promised that it will keep the interest rates near zero till 2013, in a bid to keep the cost of borrowing low. and would consider further steps to help growth.

The drastic drop in Dow Jones Industrial Average of 400 points on Wednesday and over fear of slippery European economies extended the rally in market that moved the gold prices to hit a record high of $1801 a troy ounce beating Tuesday’s mark to take all time record.

Investors are avoiding anything that poses the slightest degree of risk, the sovereign debt crisis that engulfed US and few economies of the Euro zone have intensified their hunt for more secure and stable vehicle for investment.

Paul Christopher, international market strategist at Wells Fargo, said the appetite for gold is getting out of hand for retail investors. As equities tumble and debt woes mount record breaking rally of gold sparked after the US reached last minute deal to raise its debt ceiling and later S&P’s downgrade of US debt shattered the confidence in US treasuries.

Gold has been considered a store of value or an investment vehicle that can be relied on in times of inflation or deflation; in both cases when the value of money, in terms of purchasing power, is shaken.

The sporadic rise in demand for gold in recent days comes by the fear in the markets about faltering economic recovery and rising unemployment, infused the high degree of sense of security for investment in gold.

Gold and US treasuries were seen as the most secure form of investment in the world, and even many central banks are net purchaser of U.S. treasuries for a long time, but historically low interest rates, weak US dollar and infusion of trillions of dollars in the system in U.S. has generated fears of inflation thereby causing a major shift in investors sentiment with respect to U.S. treasuries.

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