Election Traders Hedge with Sterling, FTSE and Gilts
Paddypowertrader traders surge into election result based trades as voting fever strikes the UK.
As the Greek tragedy of the European debt crisis continues in mainland Europe, Paddypowertrader has seen a lot of interest in election related bets by savvy UK based traders. Amongst the most popular trade is shorting the FTSE 100. The markets are less readable due to the huge debt crisis hitting Greece and Europe.
Market rumours on Election Day suggest that gilt traders are now backing a Conservative win (the best result for gilts), but that the general expectation remained for a hung parliament. The big puzzle over the next 24-hours will be to try and separate specific UK election-related worries from the bigger global risk aversion trades.
Most election traders are looking to the FTSE 100 to try and trade the election results in the UK. This index is quite interesting because technically it’s been tipped for lower levels for the past few weeks, but some serious underperformance leaves scope for a post-election rally.
The main indices of FTSE, DAX and DOW all moved downwards to lows on the 6th of May, election day of: FTSE -9.9%, Dax -6.7%, Dow -3.92%.
Some traders see the movement to be indicative of investors pricing in a hung parliament.
“The markets are certainly choppy at the moment as the Greece Crisis continues. Identifying the best time to go long and short was certainly the key ingredient to success. We have seen a significant increase in FTSE 100 trades in the past 24 hours,” commented Davin McAnaney, Commercial Manager, paddypowertrader.
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