Equity markets 2d

How to do it?
Buy the shares of Company that you think
would outperform its Compatitor(s)
and…
Sell short the shares of Compatitor(s)
HSBC will outperform Citi
Buy HSCB shares
Sell Citi shares for the same amount
Fingers crossed…
Advantages of spread betting
Specify the risk you are taking
Win also in falling markets
Limit market risk
Require less capital
Common relative value strategies
Stock A vs Stock A in a different market
Stock A vs stock B
Stock A vs mix of industry stocks
Stock A vs index
Index X vs IndexY
Stocks of industy A vs
stocks of industryB
Two approached to stock investing
Stock picking
- selecting the companies one by one
Index investing
- investing in wide range of shares, adjusted by overweigting/underweighting
specific sectors or shares
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