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Article: How to hedge a long position.
- Article from:
- Investors Chronicle
- Article date:
- October 27, 2006
CopyrightCOPYRIGHT 2006 FT Business. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Running your investment portfolio as if it were a hedge fund is not about embracing danger, it's about targeting more consistent returns across market upturns and downturns. But, to do that, you need to be prepared to short the market and, unless you know what you're doing, that's where the danger lies.
Spread betting
If you're new to the idea of shorting, and you want to try your hand, then spread-betting is probably the best place to start.
You can start with just a few pounds and, because it is an entry-level product, most spread-betting companies go to greater lengths to educate first-time customers. Many spread-betting websites - such as ...