Derivatives traders AIM for extra investment flexibility
Wednesday 29th June 2011
Online stockbroker and fund supermarket Interactive Investor www.iii.co.uk has this week opened up AIM stocks to its spread betting and CFD derivatives traders.
AIM stocks now account for 40% of all equity trades through Interactive Investor.
This new market will appeal to these traders looking for new opportunities with the FTSE relatively flat, and also to traders looking for extra flexibility to maximise returns and cushion losses by offsetting their equity holdings.
Mike McCudden, Head of Derivatives at Interactive Investor, said: "More and more investors looking for an alternative to the FTSE 100 are realising that AIM stocks gives them greater opportunities. We've seen a huge increase over the last couple of years in derivatives traders seeking more flexibility to execute long or short hedging strategies. Trading AIM stocks via derivatives gives you just that flexibility.
"This is a real advantage to traders in oil and commodities stocks, especially those with as much as 30-40% of their portfolio invested in these sectors. The volatility in these markets looks set to continue in the medium term. Investors trading AIM stocks can use this to their advantage by hedging bets on their prices so that if they go down, their loss on the equity side will, to an extent, be offset."
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