LONDON, July 2, 2012 /PRNewswire/ --
The past week has proven to be a bloodbath of sorts for Barclays, with the company embroiled in controversy over the LIBOR scandal, a heady combination that has pushed the company's share price lower by over 15%. Could more pain be on the way for Barclays shares?
Below, we look into how - as an alternative to traditional trading - you can take a position on Barclays' falling share price with spread betting provider Finspreads.
Thursday's (28 June) LIBOR scandal has wiped off around 15% of the company's share price in a single day following the imposition of a £290 million ($451m) fine by UK and US regulators.
Friday's news that the company, potentially along with HSBC, RBS and Lloyds Banking Group, has been pulled up by the FSA for mis-selling products to small businesses has done little to calm investor nerves.
The bank now faces unknown additional costs to clients over the failings.
Calls for Chief Bob Diamond to give up leadership have been stoking the fire further, leaving many investors contemplating a hurried exit strategy.
Yet, Barclays' loss could translate into an opportunity to profit for financial spread bettors who could find themselves benefiting from every penny that Barclays' shares fall lower.
How to Gain from Barclays' loss
Whether you believe that Barclays' share prices will fall further in the days to come, or make a speedy recovery, you can potentially profit by taking a position with spread betting - a tax-free* alternative to conventional trading in the UK.
With financial spread betting providers such as Finspreads, you can speculate on thousands of individual markets, including shares, indices, currencies and commodities. In this instance for example, all you need to do is determine whether you believe that Barclays' share price will rise or fall in the coming days.
Based on your assessment, you can either go long and 'buy' or go short 'sell' - depending on whether you believe that the company's shares will rise or fall in the days to come.
For example, if you believe that the worst is over for the bank and shares will make a recovery in the near future, you go long or 'buy'. Alternatively, if you are of the opinion that the bank will find itself getting embroiled deeper in controversy in the coming days or weeks, you could go short and 'sell'.
If you predicted the future movement of Barclays' share prices correctly, ie if you speculated that the shares would rise and they did or if you said shares would fall and they dropped lower, you would make a profit; else you would make a loss.
Find out more about how to spread bet with Finspreads or learn about the benefits and risks of spread betting shares.
Spread betting carries a high level of risk to your capital with the possibility of losing more than your initial investment and may not be suitable for all investors. Ensure you fully understand the risks involved and seek independent advice if necessary.
Spread betting is a tax-free* alternative to conventional trading and presents a tax efficient way of taking a position during volatile markets conditions, such as the present. Find out more about how you can take a spread betting position on over 12,000 individual markets with Finspreads.
Spread betting is a leveraged product which can result in losses greater than your initial deposit. Ensure you 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. Please seek independent advice if necessary.
Finspreads is a leading online financial spread betting firm, offering access to thousands of instruments on the world's financial markets.
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.