Spread betting companies tighten lending criteria

The credit crunch crisis, as it has famously become known on a global scale, has come as a result of the never-ending credit offered to consumers over the last few years, it is generally agreed.

The current economic climate has forced consumers to face the borrowing levels they have built up and as a result the banks have become tougher and tightened their lending criteria.

However, spread betting firms are also tightening their own lending criteria. Spread betting is particularly popular at times such as these because it is a great way for people to profit from a downward trend in many areas, such as the financial stock markets and foreign currency markets, such as the falling pound. It is, however, easy to get carried away if you are not too careful with the high rewards available and forget about the opposite end of the scale and the fact that losses can also be incurred.

Spread betting companies such as Cantor Index, Capital Spreads and ETX Capital do not offer a credit facility to their clients to ensure that clients cannot spread bet on credit and potentially lose more than they can afford to. Those interested in spread betting should ensure they understand how the process works before they make their first trade.