This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

How To Spread Bet Shares And Potentially Profit In A Falling Market

LONDON, April 20, 2012 /PRNewswire/ --

Learn how to spread bet shares with this step-by-step guide - I'll explain not only how you can take a position on a market that's falling, but also provide you with a comprehensive overview of spread betting and how you can access over 12,000 financial markets for only a small initial deposit.

Spread Betting with City Index

Spread betting is a popular product for traders both new and experienced as it offers entry level access into the financial markets.

Spread betting with City Index enables traders to take positions on a range of markets for only a small initial deposit typically between 1% and 10% of an underlying market's value through a low margin feature.

The margin feature increases their market exposure and potentially magnifies profits.

Spread betting is also tax efficient; currently under UK tax laws, all profits made through a spread bet are free from UK Capital Gains tax* and Stamp Duty*, though this remains subject to change.

Profit from a falling market

Spread betting allows traders to go both long (buy) and short (sell) on trades - meaning those choosing to spread bet on shares can profit from a market which falls as well as rises.

However, as a leveraged product; should the market move against your position it can also result in losses greater than your initial deposit, making risk management tools, such as stop loss orders, imperative to a trading plan.

How to Spread Bet Shares

As mentioned above, spread betting offers traders the potential to profit from a market that falls by going short on a trade and selling.

For example purposes only, let's say we are looking to take a position on the future price movement of M&S shares.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs