Spread Betting on Technology Stocks
|
|
|
|
|
|
Spread Betting on Technology Stocks
Less than a week after the launch of its high profile IPO, social networking giant, Facebook, has landed itself in hot water over allegations that the company issued a 'false and misleading' prospectus ahead of its IPO launch last Friday.
Below, we discuss how Facebook has failed to live up to expectations and how you can spread bet on their share price with Finspreads.
Spread Betting on Technology Stocks – Facebook’s Failed IPO
Facebook's larger than life debut witnessed a buyer frenzy of sorts, with investors fearing that a new technology bubble - version 2.0 - may be in the making.
The company has failed to dazzle, however, with Facebook shares sliding by around 18% on Tuesday from its IPO price of $38 to $31.
Technology bellwether Dell has shared some of this pain after the company's stocks tumbled 17% on Wednesday, May 23, after posting poorer-than-expected fiscal Q1 profits.
The heavyweight stock has dragged down others with it, with Intel Corp and Microsoft racking up falls of between 2.18 % and 2.27% respectively on the same day.
Spread Betting on Technology Stocks - A false bubble?
Facebook's dismal performance may have left many bitterly disappointed, but the stock offered fresh investors hope after the company's share price scuppered two straight days of falls to close up 3.2% at $32 per share on Wednesday.
The recent rough and tumble in the technology sector begs the question: have technology stocks been building themselves up in a false bubble, or is the sector simply pausing for breath before it resumes its rally higher?
Spread Betting on Technology Stocks
Traders keen to make a buck from rapidly changing prices can spread bet the technology sector with a Finspreads account.
Spread betting is an alternative to conventional shares dealing which enables you to profit irrespective of whether stock prices are moving up or down.
With spread betting, traders can net tax-free profits* from fluctuating stock price movements of over 12,000 financial instruments including shares, indices, currencies, commodities and metals.
Spread Betting on Technology Stocks - Example
To net a profit, you simply need to apply and open an account with a spread betting provider such as Finspreads, and determine whether you expect the price of your chosen instrument (let's say Dell shares for example) will rise or fall in the coming days.
If for instance, based on its recent dismal report, you expect Dell shares to continue falling lower, you take a short spread betting position on Dell shares.
Alternatively if you believe that the current pessimism surrounding technology stocks is short-lived and that Dell shares will climb higher in the days to come, you go long (or buy) Dell shares.
If you were right and prices move in the direction you had expected, you net a profit. If not, you make a loss.
Spread Betting on Technology Stocks - Summary
Spread betting offers numerous advantages over conventional shares dealing and is especially beneficial during volatile market conditions.
Finspreads Account / Website |
|
|
Spread trading carries a high level of risk to your capital with the possibility of losing more than your initial investment and may not be suitable for all investors. Ensure you fully understand the risks involved and seek independent advice if necessary.
Article provided / approved by Finspreads which is a trading name of City Index Limited ('CI'), which is a spread trading and contracts for difference ('CFD') provider. CI is authorised and regulated by the Financial Services Authority, Firm Reference Number 113942.
iPhone is a trademark of Apple Inc. App Store is a service mark of Apple Inc.
'Spread Betting on Technology Stocks' edited by DB, updated 30-May-12
For related pages also see:
Finspreads, updated 15-May-13
Finspreads review with User Ratings and Comments. Finspreads offer commission-free, tax-free* spread betting on 12,000+ markets, 24-hour trading, 4 mobile trading apps, 10p per point stakes, 3 account types and...read article: Finspreads.
Finspreads Prices, updated 15-May-13
Finspreads prices along with a review of the more popular Finspreads spread betting markets i.e. a look at the spreads and minimum stakes for the FTSE 100, Dow Jones, EUR/USD, GBP/USD, Gold, Crude Oil and...read article: Finspreads Prices.
Finspreads Offer, updated 15-May-13
Please note that there is no current Finspreads offer. If in doubt, please check the Finspreads website....read article: Finspreads Offer.
Finspreads Explains the 1-Point Spread, updated 15-Mar-13
Spread betting provider, Finspreads explains that the '1-point' aspect of the term, 1-point spread, refers to the difference between the price at which you can buy a...read article: Finspreads Explains the 1-Point Spread.
Finspreads Relaunches with a New Website and Powerful Platform, updated 14-Mar-13
Finspreads has been relaunched on powerful trading platform, Advantage Web. The new Finspreads platform allows traders to take advantage of the opportunities offered by...read article: Finspreads Relaunches with a New Website and Powerful Platform.
Finspreads Stop Loss Orders, updated 30-May-12
Finspreads Stop Loss Orders - Stop loss orders and guaranteed stop loss orders are a way of stopping your losses from spiralling out of control. These risk management orders can...read article: Finspreads Stop Loss Orders.
Spread Betting on Technology Stocks, updated 30-May-12
Spread Betting on Technology Stocks - Traders can spread bet on the technology stocks like Dell and Facebook but it's not straight forward. The Facebook stock's dismal performance may have...read article: Spread Betting on Technology Stocks.
Shares Spread Betting and Facebook's IPO, updated 17-May-12
With shares spread betting, you can take a position on Facebook shares irrespective of whether you believe that the company's share price will rise or fall in the near future. Before launching its IPO...read article: Shares Spread Betting and Facebook's IPO.
Low Stakes Spread Betting with Finspreads, updated 17-May-12
Finspreads is offering aspiring traders a chance to test drive the spread betting markets with low stake sizes. Starting from just 10p per point, you can first try your hand at trading with very small trade sizes, before...read article: Low Stakes Spread Betting with Finspreads.
Shorting with Financial Spread Betting, updated 26-Apr-11
Through shorting, financial spread betting provides the opportunity to profit from a falling market as well as a rising one. 'Shorting' is the term given to speculating that a market will fall in value...read article: Shorting with Financial Spread Betting.
Why Spread Betting is Ideal for Day Trading, updated 25-Mar-11
Spread betting takes several forms. Day, rolling, monthly and quarterly spread bets all lend themselves to certain traders more than others. So, what makes spread betting ideal for the short-term trader? One prime incentive...read article: Why Spread Betting is Ideal for Day Trading.
The Quick Guide to Spread Betting on Commodities, updated 09-Dec-10
In spread betting, commodities are some of the most volatile and unpredictable products on which a trader can spread bet. A wide variety of influences, from political developments to...read article: The Quick Guide to Spread Betting on Commodities.
Finding Your Spread Betting Identity, updated 01-Dec-10
When it comes to spread betting, every trader has their own individual approach formed by instinct, practice, advice from others and...read article: Finding Your Spread Betting Identity.
Spread Betting Tips: Getting the Most from Mobile Spread Betting, updated 09-Nov-10
Finspreads Market Strategist Joshua Raymond, recently stated that he sees the future of spread betting as being dominated by mobile trading. This makes thorough spread betting...read article: Spread Betting Tips: Getting the Most from Mobile Spread Betting.
Technical Analysis v Fundamental Analysis, updated 10-Nov-10
In spread betting, traders who open a position without using either fundamental or technical analysis might be considered the equivalent of the pedestrian who crosses the road without looking...read article: Technical Analysis v Fundamental Analysis.
Spread Betting Tips: Avoiding 5 Common Spread Betting Mistakes, updated 08-Nov-10
Spread betting is difficult and even the best traders sometimes get it wrong. The key is to learn from your spread betting mistakes so you do not make them again. Finspreads takes a...read article: Spread Betting Tips: Avoiding 5 Common Spread Betting Mistakes.
|
|
Q) Average Trading Results?
A) Get free trading tips, offers, price updates, important news and more!
|
|
