Three ways a spread better can prepare for volatility

Big profits can be made when spread betting highly volatile shares - but then again, so can big losses. Tim Bennett gives three tips to keep you from getting wiped out.

The recent fall in the travel group Thomas Cook's share price was spectacular even in the context of the last few volatile years. This morning the shares fell nearly 70% on news that the troubled tour operator is in talks with its banks for more financial help.

Whilst for some spread betters who have been short the shares this will have been a good result, it also highlights the risks of not covering your position on the long side or simply not being ready for a big move. Here are three tips for spread betters planning to lay bets on highly volatile shares.

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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.