The great challenge for all the investors today who are engaged in spread betting, contracts for difference trading and even FTSE is to find and maximize opportunities where they can earn profits amidst the rollercoaster ride of different markets in these times. For example, there have been so many investors who are betting on the budget announcement of the Chancellor of United Kingdom as well as speculating on the possible outcome of the summit.
On the one hand, during the deliberation of the budget, the tax free treatment on spread betting has been threatened and even the tax rate for the capital gains had been hit by uncertainties that will increase from its current status of 18 per cent. If this will happen, the tax being levied to the capital gains of all the contracts for difference traders will surely be affected significantly. In this light, there is also a high possibility that its impact will transcend beyond spread betting and even FTSE.
However, despite the uncertainties like this, many investors thought of looking the market on the brighter side. They are looking volatility in the market as an opportunity to somehow gain profits in different ways. For example, the investors looked into the decision on the fuel duty as one of the short term opportunities. Since the result of it would only be either rise or not, then betting and contracts for different can be executed. In order to do this, an investor needs to keep an eye to all the stocks, share and instruments of the companies that are vulnerable from this policy on fuel duty.
Furthermore, there are also some contracts for difference and spread betting opportunities in the long run. For instance, the budget can offer a greater scope to play for those who are eyeing on contracts for difference returns. According to several speculations, a tax relief for the businesses would surely cost the government a lot of money. However, if this will be looked into the bright side, even just an announcement of that will definitely boost the UK equities. This is in the premise that the budget will be friendlier to the businesses. Nevertheless, its impact and effects to the UK equities can only be felt in the long run.
On the other hand, while the FTSE 100 index has been going up and down for the past days and months, the EU summit will surely come up with great ideas on how to effectively respond to the uncertainties in the market. A lot of investors like CFD traders are actually awaiting for the outcomes since the market is really sensitive at present.