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The Financial Spread Betting Handbook: The definitive guide to making money trading spread bets by Malcolm Pryor

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20. Advanced Strategies

It is possible to use spread betting in other ways than just to bet on whether an instrument is going to go up or down. Delta neutral is a term often used in options trading to refer to strategies which make money irrespective of whether the market goes up or down. In this chapter we look at delta neutral betting.

Arbitrage

Arbitrage involves buying and selling instruments simultaneously to take advantage of pricing anomalies.

Let’s suppose that:

  1. one of our spread betting firms is quoting a daily cash bet on FTSE 100 Index at 5601-5602; and
  2. we notice that another of our spread betting firms is quoting 5604-5605, which is out of line with both the market and all the other spread betting firms we have accounts ...

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