Falling Standard Chartered Shares May Offer a Spread Betting Opportunity for UK Investors
LONDON, August 8, 2012 /PRNewswire/ –
Team GB may have outperformed expectations at the Olympics last the weekend, but the
last few days have been less than favourable for team Standard Chartered. The bank, which
has been accused of alleged business dealings with Iran by US regulators, has suffered
shock share price falls of over 24% since the start of the week.
With the scandal threatening to cause more woe for the bank in the coming days, it may
still be possible to net a profit by spread betting Standard Chartered shares
More Woe on the Cards?
Standard Chartered has seen its value depreciate by over GBP10 billion after being
branded a ‘rogue institution’ by US regulators earlier this week. The bank’s state banking
license is now under threat and regulators are investigating claims that the bank
allegedly hid $250 billion in Iran-related transactions.
On Tuesday, August 7, the bank suffered staggering falls on the FTSE index, slumping
to as low as 1092p at one point during mid-morning trading.
Luckily for some investors, it is possible to make a spread betting profit
[http://www.finspreads.com ] by going long or short on Standard Chartered shares,
consequently taking advantage of the additional share price volatility irrespective of
whether prices move up or down in the coming days.
As a spread bettor, all you need to do is determine whether you expect Standard
Chartered shares to rise or fall in the near future and take a position accordingly. If
you expect shares to fall as further reports about the investigation continue to emerge,
you would go short (or sell) Standard Chartered shares with a spread betting provider
[http://www.finspreads.com/Why_Finspreads.aspx ] such as Finspreads. Conversely, if you
expect Standard Chartered shares to rise, you would open a long position (or buy).
If you were right and Standard Chartered shares move in the direction you had
anticipated (ie if you expect Standard Chartered shares to rise and they do, or if you
expect shares to continue sliding lower and they do; you would make a spread betting
profit. However, if prices move against the direction you had expected, you would
encounter a loss.
As spread betting is leveraged, you could lose more than your initial investment and
may not be suitable for all investors.
Find out how to spread bet [http://www.finspreads.com/Learn_to_spread_bet.aspx ] or
learn about the benefits and risks of spread betting with Finspreads.
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 [http://www.finspreads.com ]
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.