Tuesday, April 10, 2007

Spread betting on the house market

House price fears fuel bets on market

Simon Smith of Cantor Spreadfair said some people are "going short" to hedge themselves against a drop in the value of their own property

Posted by confused76 @ 09:36 AM (447 views)
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3 thoughts on “Spread betting on the house market

  • This article inspired me to take a look at the Cantor Spreadfair rates going forward…. They make quite interesting viewing with the mid-price flat (well marginally falling) from Sept 2007 through to Sept 2008. The question now is, do I hedge my interests in a falling market by betting on them going up?!

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  • sold 2 rent 1 says:

    The problem is HP may fall a lot in real terms but not much in actual terms.
    I would rather short the DJIA.
    I will wait for it to go nearer to 13,000 first.

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  • I have tried spread betting on house prices. The prices moved around to a much greater extent than is justified by changes is market sentiment so you have to be prepared for your position to be severely in the red, otherwise you are likely to be stopped out and suffer adverse bid-offer spreads. If you have multiple bets on say different expiry dates to get the exposure you want then closing one may cause an immediate adverse movement in the other. Overall my attempt at this resulted in a small loss, and I am not encouraged to try again.

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