LONDON, July 23, 2012 /PRNewswire/ --
The UK has waited for years for the Olympics to arrive and finally, it is here. The 30th Summer Games, which cost the British government a gut-busting £9.3 billion to organise, is hoped could help wrench the country out of a double-dip recession.
But analysts are no longer so confident, with many expecting that the games will have a dismal effect at best on the country's flailing economy.
A recent report released by Moody's revealed that any benefits caused by an uplift in games-related tourism might be short-lived, while Q2 GDP estimates by the ONS, which come out on Wednesday, July 25, are expected to show that the placebo effect of the Olympics is likely to be overshadowed by the eurozone crisis.
With this in mind, would you take a position on sterling if it were to further depreciate against the US dollar should Wednesday's GDP data show further contraction?
A Chance to Profit from Falling Markets with Spread Betting
With financial spread betting provider Finspreads, it is possible to net a potential profit irrespective of whether prices are moving up or down.
This means that if sterling slipped lower against the US dollar, or the FTSE 100 plummeted following the release of the GDP estimate, you could still make a profit.
To spread bet a range of financial markets, all you'd need to do is take a position based on whether you expect a market to rise or fall in the coming days.
Take, for example, the recent plunge in G4S prices following the security staffing fiasco. As a spread bettor, if you expected G4S shares to drop even further, you would take a short spread betting position on the company's shares. If you were right and G4S shares plummeted lower than your entry level, you would make a profit.
Similarly, if you expected G4S shares to stabilise and rise higher in the coming days, you would take a 'long' position on the company's shares.
You would stand to profit so long as you were right and the markets moved in the direction you had predicted.
That is, if you took a long position on G4S expecting the shares to rise and they did, or if you took a short position on expectations that G4S shares would fall and they did, you would make a profit.
You would, however, make a loss if markets moved in the opposite direction.
Spread betting is a leveraged product which can result in losses greater than your initial deposit. Ensure you fully understand the risks.
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.