Korea, Ireland and the Spread Betting Markets

Korea, Ireland and the Spread Betting Markets

Early focus is likely to be on North Korea/South Korea where a few trigger happy idiots seem to be having a bit of a barney.

Markets have reacted slowly with a small sell off in early action but investors have seen these news bytes over the 49th Parallel so many times in the last few years that it is unlikely to build to much more than a small defensive move lower for the time being.

Given their safe haven status, the dollar and gold spread betting markets have rallied a bit from the pre-news levels but it is unlikely that much more will happen unless a more general conflict breaks out. North Korea appears to have shelled a small island which would merely indicate some positioning rather than an outright aggressive move.

The FTSE 100 has reacted and is now down at the lows of yesterday again but is not finding any follow through just yet. Tensions on the other side of the planet are unlikely to push us too far but coming on top of the European Soap Opera we may see more traders decide that taking a bit of money off the table might be a prudent move in the short term.

The reasons for the UK lending Ireland £7bn are reasonable on the face of it (that they are a massive trading partner of ours).

But it might be prudent to ask what it is that we trade with them? In reality the vast majority is probably financial services so the 7bn is actually being lent to prop up HBOS and RBS.

The ancient celts and picts are probably having a good long laugh about the old enemy’s comeuppance. For all of the approbation heaped on ‘The City’ it was not actually the London institutions that went to the government ‘cap in hand’. Edinburgh (RBS and HBOS), the North East (Northern Rock and Bradford and Bingley) and a host of regional Building societies were the weak links.

If Ireland is so important to UK business then we should be very concerned in any case as their budget cuts will send the entire economy into even more of a tail spin than it has already seen. The same can also be said for Spain but as our trade with them seem to be of the holiday variety (and, unless my science is well off track, I am reasonably sure that the sun does not stop shining in times of economic woe) the problem seems less urgent from a UK perspective.

The vast sums flowing across the various Eurozone borders is now reaching critical levels and it is a moot point as to how much longer German voters will continue to sub their more profligate neighbours.

If German taxes are forced higher to pay for the PIGS then we may see rather more pressure for exit routes. The Euro may find that life is actually easier without Germany rather than the without the weaker members.

Forex Spread Betting Markets Comparison


EUR / USD Daily - Spread Size	1	1	1	2	0.8	1	1	1
EUR / USD Daily - Min Stake	£1	£0.50	£0.50	£0.5	£1	£1	£1	£1
GBP / USD Daily - Spread Size	2	2	2	3	0.8	2	2	2
GBP / USD Daily - Min Stake	£1	£0.50	£0.50	£0.5	£1	£1	£1	£1
EUR / GBP Daily - Spread Size	1	2	2	1	1	1	1	2
EUR / GBP Daily - Min Stake	£1	£0.50	£0.50	£0.5	£1	£1	£1	£1
USD / JPY Daily - Spread Size	0.8	2	1	2	0.8	0.8	0.8	2
USD / JPY Daily - Min Stake	£1	£0.50	£0.50	£0.5	£1	£1	£1	£1

Comparison Notes.

Risk Warning: Spread betting and CFD trading carry a high level of risk to your capital and you may lose more than your initial investment. Spread betting and CFD trading may not be suitable for all investors. Only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved and seek independent financial advice where necessary.

'Korea, Ireland and the Spread Betting Markets' by DB, updated 23-Nov-10

For related pages also see:

Ladbrokes Financial Spreads, updated 17-Jun-10
Ladbrokes Financial Spreads offers investors a range of benefits including Free Guaranteed Stops, Spreads from as low as 1 point and the ability to buy and sell major financial markets, including stock market indices, equities, FX markets, commodities and...read article: Ladbrokes Financial Spreads.

ODL, updated 12-Oct-10
According to ODL, ''ODL Markets is powered by FXCM and only makes a profit from the spread. Our No Dealing Desk technology...read article: ODL.

The Gold Market in December 2010, updated 06-Dec-10
The two month highs of the US dollar have weighed on the price of gold. Despite the fact that gold prices usually rally in times of economic uncertainty, such as the...read article: The Gold Market in December 2010.

FTSE 100 Spread Betting and European Sovereign Debt, updated 01-Dec-10
The world stock markets and the euro have slumped on concerns that the European sovereign debt crisis will spread across the continent. Further clouding the...read article: FTSE 100 Spread Betting and European Sovereign Debt.

Korea, Ireland and the Spread Betting Markets, updated 23-Nov-10
Given their safe haven status, the dollar and gold markets have rallied a bit from the pre-news levels but it is unlikely that much more will happen unless...read article: Korea, Ireland and the Spread Betting Markets.

US Quantitative Easing and the Forex Spread Betting Markets, updated 22-Nov-10
Whilst the US Dollar will often benefit from turmoil in the markets the US Federal Reserve's second round of quantitative easing will most likely...read article: US Quantitative Easing and the Forex Spread Betting Markets.

Where Next for the UK and US Spread Betting Markets?, updated 19-Nov-10
Investors had few places to hide recently as commodities, bonds and stocks fell on fears that China may raise interest rates. However it's been a double dose of...read article: Where Next for the UK and US Spread Betting Markets?.

Up or Down for Spread Betting Indices?, updated 12-Nov-10
At the beginning of November 2010, in an attempt to boost the anaemic US economy, the US Federal Reserve announced that it would buy $600bn of government bonds by...read article: Up or Down for Spread Betting Indices?.

What's Affecting the Forex Spread Betting Markets?, updated 11-Nov-10
Whilst the dollar remains weak against the high-yielding and emerging market currencies, it has been looking stronger versus the euro and the yen after...read article: What's Affecting the Forex Spread Betting Markets?.

BoE Inflation Report Aids Sterling Spreads, updated 10-Nov-10
The fact that UK growth prospects are looking reasonable means that the BoE may well have to look at higher rates at the back end of 2011. As a result we a seeing a rise in Sterling...read article: BoE Inflation Report Aids Sterling Spreads.

Spread Betting, Quantitative Easing and the FX Markets, updated 08-Nov-10
The decision by the US Federal Reserve to inject the US economy with an additional $600bn over the next few months caused asset prices to surge with stock market prices...read article: Spread Betting, Quantitative Easing and the FX Markets.

Are The Global Commodities Set to Rise Further?, updated 27-Oct-10
The rise in commodity prices caused by the falling US dollar since early September appears to be waning as a decision on a potential second...read article: Are The Global Commodities Set to Rise Further?.

Up or Down for the Crude Oil Market?, updated 27-Oct-10
Secretary General of OPEC Abdullah al-Badri said that oil prices of $75-$85 a barrel wouldn't hold back the global economy, despite some...read article: Up or Down for the Crude Oil Market?.

Bond Spreads Weaken on Further Stimulus Talk, updated 06-Oct-10
Fortunately none of the woes over state debt are impacting the spread betting markets at the moment as indications that Central Banks intend to be even more...read article: Bond Spreads Weaken on Further Stimulus Talk.

Where Next for the Crude Oil Spread Betting Market?, updated 28-Sep-10
Every Wednesday the US government releases the latest oil inventory numbers and the recent figures have not been good for those speculating on a rise...read article: Where Next for the Crude Oil Spread Betting Market?.

Where Next for Sterling?, updated 27-Sep-10
The Pound is suffering again in the currency markets and it has fallen to its lowest levels against the Euro currency since July 2010. It briefly pushed through the...read article: Where Next for Sterling?.

Gold Spread Betting Market Hits All Time High, updated 24-Sep-10
In the commodities markets, Gold has again reached an all time high of $1,296.10 per troy ounce. It may only be a temporary shift, however the equities markets are...read article: Gold Spread Betting Market Hits All Time High.

BoJ Intervenes in the Yen Spread Betting Market, updated 15-Sep-10
The Bank of Japan finally decided enough was enough last night and came in buying around $3bn versus the Yen. In the long run it is difficult to...read article: BoJ Intervenes in the Yen Spread Betting Market.

Spread Trading on the Gold Markets, updated 01-Sep-10
The gold market is constantly hitting new highs. Yes after hitting the next high it may drop as much as $75 or even $100 but the metal soon finds its way again and looks to...read article: Spread Trading on the Gold Markets.

Trading on the Crude Oil Markets, updated 13-Aug-10
With the risk of a double dip recession and therefore lower demand for energy products, crude oil prices have been rather deflated of late. If you are looking to trade the oil markets then...read article: Trading on the Crude Oil Markets.

Indices Spreads Remain Subdued on Low Volumes, updated 06-Aug-10
Recently I was in discussion with a top analyst from one of the major investment banks and the general thrust of the conversation was how...read article: Indices Spreads Remain Subdued on Low Volumes.

How to Trade the FX Markets, updated 30-Jul-10
The FX markets are often an interesting if not a confusing place to trade. The Japanese Yen is still seen as the strong man of the major currencies yet that is ...read article: How to Trade the FX Markets.

Spread Betting Markets Under Pressure, updated 30-Jul-10
The old saying of 'Sell in May and go away' has rarely seemed quite so appropriate as in the current climate. The markets are certainly spooked...read article: Spread Betting Markets Under Pressure.

Spread Betting and Money Supply Data, updated 26-Jul-10
So we have seen the M4 money supply numbers come out from the UK Treasury and the numbers are broadly steady but limited. This state of affairs is not good enough for...read article: Spread Betting and Money Supply Data.

Reducing Your Risk When Spread Betting, updated 13-Jul-10
We have seen the same pattern repeating itself for some time now. This sort of price action though has its positives especially for day traders. Nevertheless when trading the stock market there are some risks...read article: Reducing Your Risk When Spread Betting.

Spread Betting on the BP Share Price, updated 01-Jul-10
The problems for BP are mounting and this has really been holding back the FTSE 100. As the FTSE 100's largest company, a drop of...read article: Spread Betting on the BP Share Price.

Banking Oversight to be Handed to BoE in FSA Break Up, updated 17-Jun-10
As the Captain decides to rearrange the deck chairs on the Titanic, the BoE has been tasked with taking over much of the FSA's remit. Overall we are left wondering...read article: Banking Oversight to be Handed to BoE in FSA Break Up.

Spread Betting on the Falling Euro/Dollar Market, updated 23-May-10
Until recently, all of the Euro-is-in-trouble stories were in the future tense. The problem now is that the articles have, to a greater or less degree, changed to the present tense. The Euro has been drifting against...read article: Spread Betting on the Falling Euro/Dollar Market.

Spread Trading the Dow Jones, updated 19-May-10
Over the last couple of years we have seen increased market volatility as the credit crunch and hesitant recovery have changed the face of the financial landscape. Nowhere has this been more obvious than the Dow Jones. Many investors have ...read article: Spread Trading the Dow Jones.

Spread Betting and the Gold Markets, updated 19-May-10
Gold has broken through to yet another record high. The previous high of $1226 per troy ounce was set in November 2009. Since then the gold market has dropped as low as...read article: Spread Betting and the Gold Markets.

Tips for Trading Stock Market Indices, updated 10-May-10
Many traders and investors have trading rules and tips to help guide their investments. To me too many tips are on a particular trade and do not focus on strategies. At the same time too few tips...read article: Tips for Trading Stock Market Indices.

Sterling Spreads Continue to Struggle, updated 02-Mar-10
When the forex markets don't like you they really don't like you. Sterling continues to weaken as the prospect of either a renewed Labour administration or a weakened...read article: Sterling Spreads Continue to Struggle.

Greek Bailout and Forex Tax News, updated 10-Feb-10
Yesterday our early morning comment emphasised that the Northern European States would eventually fall into line and prop up the PIGS. The thinking was that the...read article: Greek Bailout and Forex Tax News.

Spread Trading the Oil Markets, updated 06-Feb-10
So far in 2010 the crude oil market has been rather unspectacular. The only people who seem to be making money, apart from the gents who own the wells, are those who have been ...read article: Spread Trading the Oil Markets.

Gold Futures and China, updated 26-Jan-10
The gold futures market has been fascinating to watch over the last few years - although it has not always been the easiest market to call. With the Chinese economy doing so well there must be increasing amounts of pressure to float the Yuan. This pressure is underpinning the price of gold. A stronger Yuan translates...read article: Gold Futures and China.

Financial Spread Trading UK, updated 14-Jan-10
Financial Spread Trading does have its risks but there are a good number of benefits. Financial spread trading is Tax Free*, it is also...read article: Financial Spread Trading UK.

Spread Betting Markets for 2010 , updated 13-Jan-10
What can we expect this year? Stock markets are quite well valued at the moment but equities continue to give better returns than...read article: Spread Betting Markets for 2010 .

Political Quotes, updated 19-May-10
To celebrate the comedy of politics we have put together some of our favourite politics quotes, including audio and video clips....read article: Political Quotes.

Q) Average Trading Results?

A) Get free trading tips, offers, price updates, important news and more! All Free - Click here!

Risk Warning: Spread betting and CFD trading carry a high level of risk to your capital and you may lose more than your initial investment. Spread betting and CFD trading may not be suitable for all investors. Only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved and seek independent financial advice where necessary.

The contents on CleanFinancial.com are for information purposes only and are not intended as a recommendation to trade. Nothing on this website should be construed as investment advice.

Neither CleanFinancial.com nor any contributing company/author accept any responsibility for any use that may be made of the above or for the correctness or accuracy of the information provided.

* Tax law is subject to change or may differ if you pay tax in a jurisdiction other than the UK.

1) Daily Trading Tips

2) Financial Tips

3) Financial Tipping