• Spread betting
Spread betting is buying a share or product at a certain price and selling it at a different price, with the 'spread' the difference between the two. If the sale price is higher, you make a profit. If the purchase price is higher, you make a loss. As always, such a risk may only be wise if you can afford to make some losses over the course of your investment.
• Hedging
Hedging is when an investor chooses complementary products in which to place their money, with the intention that if one should perform badly, the others will compensate for the loss.
• CFDs
A CFD (contract for difference) is a method of investing in a market proposition without actually owning any shares in it. It offers similar characteristics to a traditional stock, but will usually incur a daily handling cost rather than charging stamp duty.
• Risks
Almost all investments will carry a risk of some form. It is the price you pay for a high rate of return. As always, it may be worth considering the impact any losses are likely to have on you and adjusting your investment portfolio accordingly.
Independent offshore savings, investment, pension and taxation advice.
Independent offshore savings, investment, pension and taxation advice.
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