Top tips to turn a profit from Brexit
It can be argued that the current Brexit situation represents one of the most profound economic milestones since the global financial crisis of 2008. While some investors are running for the proverbial hills, others seek to make money from the instability associated with the value of the pound in relation to other currencies such as the dollar and the euro. However, this is often easier said than done. Turning a profit during what will almost certainly equate to bearish conditions requires clarity, insight and focus. Furthermore, specific investment approaches should be embraced from the very beginning. Let us examine a handful of methodologies which will help traders leverage any perceived future market instability.
Forex and Spread Bets: The Universal Edge
Forex trading is the most liquid form of investment in existence and trillions of dollars change hands on a daily basis. While this is appealing to those who are searching for short-term profits, risk-averse traders may immediately hesitate at the prospect of making any type of commitment. This is when the power of spread bets will come into play.
It should first be mentioned that spread bets are associated with both rising and falling asset values. In other words, traders will be able to turn a profit in the event that they correctly predict the correlation of the pound and an additional currency. Revenue can be generated even in the event that the pound loses value; the major point is that directional movement trumps an increase in value alone.
It is also possible to choose the size of the spread; an excellent hedge against unforeseen levels of risk. Margin trades are additional options for those with a great deal of experience. Having said this, such positions should only be taken by those who are well aware that losses could exceed profit margins.
Investing Smart Instead of Hard
Many investors will choose to reallocate any accrued profits into home-based businesses such as retail websites. However, this action represents another form of investment. It only makes sense that the best ecommerce platform is selected from the very beginning. There are a handful of variables which separate the good from the bad. These often include:
-Dozens of different payment gateways.
-Intuitive and comprehensive customer support.
-Fully customisable virtual storefronts.
-A user-friendly architecture.
-Cost-effective and sensible pricing plans.
A growing number of astute investors are migrating to the e-commerce solutions solely provided by Shopify. This is actually one of the fastest-growing platforms on the market today and many feel that it will overtake major industry players such as Big Commerce and Magento in the near future.
While it is wise to take a conservative approach to trading during times of potential volatility, there are always opportunities to turn a short-term profit. Spread bets and similarly fluid vehicles such as contracts for difference represent excellent options to consider. Although the outcome of Brexit is far from clear, the markets will indeed survive.