LONDON, July 4, 2012 /PRNewswire/ --

As Prime Minister David Cameron announces a parliamentary review of the banking sector - how will you profit from a potential rise or fall in its share price?

Spread Betting the Banking Sector

With financial spread betting provider City Index, you can take a position on over 12,000 financial instruments including shares, commodities, currencies and sectors.

Through a quarterly future spread bet for longer term trades, you can take a position on the UK Banking sector for only a small initial deposit.

Below, we look at the latest news and how you could potentially profit in the coming months.

Cameron calls for Review following "Scandal"

On Monday afternoon (July 1 2012), David Cameron announced a parliamentary review of the banking sector following Barclays' £290 million fine for inter-bank lending.

Speaking to the House of Commons, Cameron referred to the manipulation of interest rate - by not only Barclays but possibly several other UK banks - as a 'scandal'.

The parliamentary committee of inquiry will have full access to 'papers and officials and ministers', including those from the last government, stated Cameron.

The aim of the review is to ensure the UK has the 'toughest and most transparent rules' of any major financial sector.

How Will the Review Affect the Market?

Whether trading physical shares or spread betting on the future price movement of the banking sector; you will be questioning what affect this parliamentary review will have.

However, unlike traditional shares trading - with financial spread betting you can potentially profit from not only a rise in the market, but also a fall.

In addition, you do not own shares in the underlying instrument, but instead - you place a trade on the direction in which you believe the market will go.

How to Spread Bet the Banking Sector

Above, we discussed how with a spread betting account - you could potentially profit from both a rising and falling market without owning shares in the underlying market.

Here, we explain how.

For example, let us predict that following the review of the banking sector, you believe that this will have a negative effect and cause its share price to fall.

Therefore, through the spread betting platform you decide to go short and sell the banking sector.

In the event you are correct and the market moves in your favour, you will profit in line with every point that market falls.

However, if you are wrong - you will incur a loss for each point the market rises.

Tip: As a leveraged product you can incur losses greater than your initial deposit.

Start Financial Spread Betting

To start spread betting across a range of trading platforms - including mobile - you can apply for a spread betting account with City Index through their website: http:http://www.cityindex.co.uk

Read More Spread Betting Tips

If you found this article helpful, you may want to read more just like this. You can access a range of free spread betting tips, guides and articles through the City Index website.

About City Index:

Today more and more individual traders are discovering the benefits of derivatives, and many of them are discovering them through a City Index trading platform.

As a group, we transact in excess of 1.5 million trades every month in over 50 countries. We provide access to a wide range of instruments including margined foreign exchange, CFDs and, in the UK, financial spread betting.

We constantly look to improve the performance of our platforms and expand our range of services. The result is our customers benefit from innovative trading tools with transparent pricing, competitive spreads, and a high standard of customer support. Visit http://www.cityindex.co.uk/ for details.

SOURCE City Index