hello,
I have recently been introduced to the world of spreadbetting and before I start for real I have been researching etc to fully understand it.
Whilst doing this a situation occured to me where it seemed you could always profit. Say for instance there was some economic data to be published in the future and in these volatile market times it can be assumed that whether good or bad, the news is likely to have an immediate impact on, for instance the FTSE. Could you not go long and short on the FTSE so that whilst both positions were open you would be making a loss on the spread, but then when the news was released close the position that is in contradiction to the direction the market moves.
Im pretty new to this so there could be some obvious errors in my reasoning or in how the whole spread betting system works, but was just curious.
Thanks
I have recently been introduced to the world of spreadbetting and before I start for real I have been researching etc to fully understand it.
Whilst doing this a situation occured to me where it seemed you could always profit. Say for instance there was some economic data to be published in the future and in these volatile market times it can be assumed that whether good or bad, the news is likely to have an immediate impact on, for instance the FTSE. Could you not go long and short on the FTSE so that whilst both positions were open you would be making a loss on the spread, but then when the news was released close the position that is in contradiction to the direction the market moves.
Im pretty new to this so there could be some obvious errors in my reasoning or in how the whole spread betting system works, but was just curious.
Thanks