In highly volatile markets in which prices move suddenly in an unpredictable manner can be a very intimidating experience even for the most experienced trader. When share prices fall, a lot of traders instinctively pull back their money back and keep in inside their banks.
However, for a trader who have extensive knowledge of spread betting, falling markets and volatility is not an obstacle in profiting from a difficult environment. Even with the most difficult situations, spread betters represent an advantage for opportunity in profits which traditional share trading does not seem to have.
With traditional share dealing, individual traders can only profit when the existing markets are on the rise; there is no effective approach for a private trader to profit from a share price whose price is plummeting.
Spread bets on the on the hand, allows traders to gain from falling markets through a process known as short-selling or going short. Short selling in spread betting is practically the same as purchasing except that traders are targeting for the price to go down instead of going up.
Posted by Harrison Geneff | Tags: Volatile, Volatile Environment