There’s something that puzzles me a little about this piece in the Telegraph.
Spread betting company Cantor Index says its clients have enjoyed a
purple patch through playing the forex markets. David Buik says:
"Spread betters in foreign exchange have had an excellent three months
in selling the pound against the dollar at $1.85 in early September,
taking profits in early October and going back in again to do the same
trade at around $1.79 at the end of October. Today the pound stands at
$1.7445.
It’s not just that it reads like an advertorial for Cantor Index. And I know the column is called "You Bet" but this:
Since August 2005 investors have been reaping profits from a number of financial markets.
Y’see, the thing is, this is spread betting, with Cantor setting the prices. Apart from the bookie’s take, it’s a zero sum game. Whatever is won by one punter is lost by another. So there are always investors reaping profits, just as there are always an equal volume of losses.
So the same article could be written exactly the other way round and still make just as much sense. Those buying the pound against the dollar at $1.85 in September have lost a bundle.
Maybe it wouldn’t act as such a good come on for Cantor Index though?
Leave a Reply