What’s left of HMV, Jessops and Comet scattered across a bloody front line has provided valuable cautionary measures for the commendable spread better eyeing income from retail stocks early this year.

Five out of the top ten retailers such as online grocer Ocado is appearing in the higher list with more than 24 % of the company’s stock to the short seller.

With wages not able to maintain the cost of expenses, it isn’t any easier for anyone in the selling industry. Considering the risks and the huge returns for those determined enough to gamble the stakes should be well enough worthwhile.

For the inexperienced, the additional advantages for better leverage provided by spread betting immensely improves returns without the rather costly outlay on shares.

By utilising spreads bet and purchase Dixons for example. Placing your bet on the shares to go up at 12p for £1 a point would yield the same returns not including the tax bill and just at the expense of keeping the positions open.

In retail a lot of experts say that stock-picking is very critical but spread betting techniques can be used as a leverage to hedge the risks augmented by the grasp of current failing trends.

In addition, there is an option of playing off the middle ground – the likes of Marks and Spencer and Debenhams- against strong competitors at both ends of the retail food industry. Another interesting trading scheme is selling the latter while purchasing Burberry and Associated British Foods, proprietor of the unmanageable Primark.

Contrary to popular opinion, it neither appeals to the high end like Burberry or the lower end namely Primark sending it to further stress from competition.

Many firms are now leaning towards retailers with better online platforms such as Argos, when compared against Dixons. The circular pattern of the trend reveals that there are less people participating in the High Street and are simply exploring more options on the internet. If traders are ultimately placing all their bets on the High Street then the riskier it is to do business.

Last Updated: January 31st, 2013