Three tips for forex spread betters

With the major currencies bouncing around all over the place, many spread betters will be tempted to try their hand in the forex markets. But before you dive in, make sure you know the pitfalls.

It's all happening in the forex markets. The euro is under pressure as sovereign debt woes continue to stalk Ireland, Portugal and Spain, and the Germans get ever more nervous about the cost of supporting other eurozone members.

Meanwhile, in the US, the latest round of quantitative easing (QE2) is yet more bad news for the US dollar (more dollars = a lower price in the foreign exchange markets). So with major currencies bouncing around, plenty of spread betters will be tempted to try their hand in the forex markets.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Tim graduated with a history degree from Cambridge University in 1989 and, after a year of travelling, joined the financial services firm Ernst and Young in 1990, qualifying as a chartered accountant in 1994.

He then moved into financial markets training, designing and running a variety of courses at graduate level and beyond for a range of organisations including the Securities and Investment Institute and UBS. He joined MoneyWeek in 2007.