Spread Bet BSkyB Shares As They Tumble Over 3% on Premier League Deal

Spread Bet BSkyB Shares As They Tumble Over 3% on Premier League Deal

LONDON, June 18, 2012/PRNewswire/ --

As BSkyB shares tumble, how are you planning to potentially profit from the fall? Here
we show you how to spread bet on a falling market [http://www.finspreads.com ].



Financial spread betting allows you to go both long and short on a market, opening up
opportunities to profits regardless of the market's direction.



BSkyB Shares Fall



BSkyB shares suffered heavy falls on Thursday, June 14 2012, losing over 8% at one
point before recovering slightly to close down on the day by 3% after announcing that the
company, along with British Telecom, will be shelling out a combined fee of GBP3 billion
to secure live broadcasting rights for the Premier League matches over the next four
years.



The announcement has caused a knee-jerk reaction among investors, jostling BSkyB
shares down by 8% at one point on Thursday on fears that the company may have paid too
much for the broadcasting rights for the highly publicised series.



Shares in BT also racked up losses, closing down by 3.5% in Thursday's trading
session. The GBP3 billion price tag marks a GBP1.25 billion or 70% increase on the current
Premier League rights package shared by BSkyB and ESPN.



An Opportunity to Net a Bargain?



Thursday's fall brings BSkyB's share price down to its lowest level since April,
presenting spread bettors a potential opportunity to pick up what they may see as a
bargain in the short term if they feel BSkyB's shares price could recover.



Spread betting is an alternative
[http://www.finspreads.com/About_spread_betting/Spread_betting_vs_trading.aspx ] to
conventional shares trading, offering investors the opportunity to net a profit
irrespective of whether a company's share price is rising or falling.



With the added advantage of leverage and tax-free profits*, spread betting can be a
great trading tool during volatile trading conditions. However, leveraged trading can also
be a double edged sword as if you can lose more than your initial deposit if you do not
employ prudent risk management.



Spread betting, unlike more conventional trading, enables you to profit irrespective
of whether a instrument's price is moving up or down. This means that as a spread bettor,
you can profit even if a company's share price is on the decline, as with BSkyB showed on
Thursday 14 June 2012. All you need to do is determine whether you believe that prices
will rise or fall in the coming days.



In the case of BSkyB shares, let's say you believe that the current fall in share
prices is only a knee-jerk reaction and that prices will stabilise in the coming days.
Keeping this in mind, you take a long (or buy) position on BSkyB shares with an online
spread betting provider such as Finspreads
[http://www.finspreads.com/About_spread_betting.aspx ].



If you were right and BSkyB shares rise above your buy price in the coming days, you
would net a profit. If you were wrong, however, you would net a loss.



Similarly, if you believe that the GBP3 billion Premier League deal will impact
BSkyB's profit potential over the next couple of years, forcing its price even lower in
the long run, you would take a 'sell' spread betting position, also known as going short
on BSkyB shares. If you were right and BSkyB shares continue to lose value below your sell
price, you would net a profit. Had prices risen, you would make a loss.



Summary



Find out more about how you can take a spread betting over 12,000 markets
[http://www.finspreads.com/Our_Services/Spread_betting_markets.aspx ] with Finspreads.



Spread betting is a leveraged product which can result in losses greater than your
initial deposit. Ensure you fully understand the risks.



*Spread betting is exempt from UK stamp duty and Capital Gains Tax (CGT). However, tax
laws are subject to change and depend on individual circumstances. Please seek independent
advice if necessary.



About Finspreads:



Finspreads is a leading online financial spread betting [http://www.finspreads.com ]
firm, offering access to thousands of instruments on the world's financial markets.



The company pioneered fully interactive online spread betting in 1999 and continues to
invest in technology to ensure that its service remains amongst the market leaders.





Source: Finspreads

Contact: Joshua Raymond, City Index, +44(0)20-7107-7002, joshua.raymond@cityindex.co.uk


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