Do you know about - Spread betting on interest rates
Mortgage Rates Forecast ! Again, for I know. Ready to share new things that are useful. You and your friends. What I said. It is not outcome that the actual about Mortgage Rates Forecast . You see this article for information on anyone wish to know is Mortgage Rates Forecast .How is Spread betting on interest rates
Spread betting on interest rates Video Clips. Duration : 2.02 Mins.We had a good read. For the benefit of yourself. Be sure to read to the end. I want you to get good knowledge from Mortgage Rates Forecast . Interest rates are a market like any other. So if you want to trade on the movements of UK and European rates, look no further than Spreadex's interest rate markets. You can bet on UK interest rates with an instrument called short sterling. Short sterling contracts show you a prediction of what LIBOR (London Inter Bank Offer Rate) will be at certain points in the future. The price of Short Sterling is calculated by subtracting the current predicted interest rate from 100. So if June short sterling is trading at 97.50, the market is predicting interest rates in June will be 2.5% (100 minus 2.5). Because of the way that short sterling is calculated, buying and selling might seem a little upside down. Just remember that in this market, if you expect interest rates to fall in the coming months, you buy short sterling, and if you believe interest rates will rise, you sell them. The short sterling market can be a good way to hedge against interest rate rises, which could be useful if you have a variable rate mortgage. Remember -- the value of the short sterling contract changes constantly. It reflects the market's view on what direction interest rates will take. News, rumour, and economic data all influence this market -- often without the Bank of England ever opening its mouth! To give an example of a Short Sterling, Futures bet; if you placed a £5 sell with Spreadex at 99.20 and LIBOR rose to 1.5% (so 98.50 on the Spreadex price) by that future point, you would make £350 ...
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