Spread betting profits from falling shares

This month saw the FTSE index, the shares index of Britain’s largest 100 public companies, lose more than £26 billion in what the economy terms as another Black Friday as share prices plunged, jobs were cut and currencies fell even further than before, including the value of the pound.

The falling index hit pensions, investments and has further damaged confidence in the British economy. Many investors lost a fortune, and yet many more made some handsome profits, on this terrible day for traditional shares investors.

The ones making the big money were generally spread betting, or spread trading, by betting against the FTSE.

Many spread bettors would be the few rejoicing as the pound fell to new lows against the Euro, bank’s share prices, including HBOS and Lloyds, plunged and the shares bloodbath continued. For the ones who correctly predicted the movement of the markets and placed a spread bet, they would be rejoicing as the greater the fall, the greater their profits.

It might sound crazy that somebody would be making such huge profits from a falling market, but spread betting is one of the few areas where bad news can be turned into solid profit.