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Short Financials ETF's - Which Spreadbetters?

  • 05-05-2009 4:40am
    #1
    drunkdaz
    Closed Accounts Posts: 57 ✭✭


    Does anyone know of a spreadbetter that will allow you to bet on the inverse of the performance of the Financial Sector? Namely on the FAZ ETF (Or the SKF or SEF)? I'm looking to short the sector while limiting my downside should this Bear rally continue, or worse turn into a rally....

    I'm currently using CMC Markets but they only have a few limited (and not inverse) sector bets.


Comments

  • #2
    soddy1979
    Registered Users, Registered Users 2 Posts: 284 ✭✭soddy1979


    Sorry, I don't know of any companies that offer that index. Just on a technical note, I thought with spreadbetting you didn't need an inverse return instrument, because you can go short as well as long. Please correct me if I'm wrong.


  • #3
    drunkdaz
    Closed Accounts Posts: 57 ✭✭drunkdaz


    soddy1979 wrote: »
    Sorry, I don't know of any companies that offer that index. Just on a technical note, I thought with spreadbetting you didn't need an inverse return instrument, because you can go short as well as long. Please correct me if I'm wrong.

    You are correct that you can go short, but remember shorting has theoretically unlimited downside, the price can keep rising...

    Instead I want to go long one of these Bearish ETFs, as my trade will have a set bottom or maximum loss, that is when the ETF's price hits zero.
    For example the FAZ yesterday hit a 52 week low of $6.28, down from over $200 in November.


  • #4
    daveirl
    Closed Accounts Posts: 14,483 ✭✭✭✭daveirl


    This post has been deleted.


  • #5
    drunkdaz
    Closed Accounts Posts: 57 ✭✭drunkdaz


    daveirl wrote: »
    This post has been deleted.

    Yeah I've heard this too; that you should not really hold them overnight, though I still don't 100% understand why.. That said ETF's are often a bit of an enigma. Well I only really want to use them for short term/hedging, and have no intention of betting the house on them either.


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