the exchange digital sample may 2011

AnAlysis: FTSE on a road to nowehre

Time To FloAT: The Impact of the FSa 2007

CelebriTy TrAder: Ricky Hatton

CiTy breAk: Vienna

THE bEll’S bEEn

Rung, wElcomE To

B E T W E E N T H E T R A D I N G F L O O R A N D T H E F I N A L S C O R E . . .

...................SPREAD BETTING...................FOREX...................CFDs...................SPORTS BETTING.............................

www.theexchangemagazine.com

issue 7MAY 2011

£3.95

TRadIng claSS

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THE OPEN | WELCOME

4 | THE EXCHANGE | May 2011

As we stAnd on the doorstep of the good old British summer, things are looking rosy here at The Exchange. The endless Royal Wedding coverage is finally in the books (or at least it will be by the time you read this), the sun is shining, the summer social scene is almost here and it’s been a good month for us in the markets. Here’s to hoping the good times continue to roll. The theme of this month’s issue is, as you might have already guessed, education. The magazine regularly attends trade fairs and live shows, and after speaking to our readers face to face we felt it was time to really go back to basics with learning how to trade. We’re sure you’ll find the issue useful in putting you on the path to being the profitable trader you’ve always wanted to be.The issue is still packed with our regular articles, including celebrity trader, market analysis, strategy and lifestyle, so there’s plenty for you expert traders to get your teeth stuck into as well.As you’ll see in this new issue of the magazine (if you haven’t spotted it on our website already) last

month we launched our search for the Top 50 most influential people in spread betting, forex and CFDs for 2011. As you can see that’s a bit of a mouthful so we’re calling it the Top 50, and are really excited to hear who spread bettors think the most influential people in their industry are. You can register your vote through the website from 16th May, we value the input of our readers with every aspect of the magazine but especially need your help with deciding who the most influential men and women in trading are. The aim is to compile as diverse a list of people as possible, so don’t be worried about thinking outside the box. We’re also running a competition and offering a prize for the person who nominates the winner (nominations open until 13th May), details of which are also on the website.I hope you enjoy the issue, and can’t wait to see who you’ll be voting for come the 16th.

Your magazine needs you!

EDITOR’S LETTER EDITOR AlEx HAMMOnD DEPUTY EDITORFRED PAllEY

ART DIRECTORAlEJAnDRO GUERRA-PAlACIOS

WEB DEVElOPERCARlOS PEREZ

COnTRIBUTORSSAnDY JADEJAnICK BEECROFTDEClAn FAllOnKEn FISHERMICHAEl DERKSAlASTAIR MCCAIGMARK SOUTHERnJEnnIFER VOn STROHEAlESSIO RASTAnIMICHAEl HEWSOnPETER WEBBTOM ROTHERHAMlISA CAMPBEllCHRIS SMITH

PUBlIC RElATIOnSMARK SOUTHERnPOlYGOn PR

MARKETInGAlBERT VEllVÉ

[email protected]

PUBlISHED BYTHE ExCHAnGE

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© 2010. The Magazine is published by The Exchange.All rights reserved. The publishers declare that anypublication of any advertisement does not carry theirendorsement or sponsorship of the advertiser or theirproducts or services unless so indicated. Contributionsare invited and, whether or not accepted, submissionswill be returned only if accompanied by a stampedaddressed envelope. No responsibility can be takenfor drawings, photographs or literary contributionsduring transmission or while in the Managing Editor’shands. Proof of receipt is no guarantee of appearance.In the absence of an agreement, the copyright of allcontributions, literary, photographic or artistic belongsto the The Exchange. This publication (or any partthereof) may not be reproduced, transmitted or storedin print or electronic format (including, but not limitedto, any online service, database or part of the internet),or in any other format in any media whatsoever,without the prior written permission of The Exchange.The Exchange accept no liability for the accuracy ofthe contents or any other opinions expressed herein.

ALEX HAMMONDEDITOR


16

THE EXCHANGE | ISSUE 7

May 2011 | THE EXCHANGE | 7

contentsTHE OPEN

10 UPS & DOWNS12 CELEBRITY TRADER:

RICKY HATTON

FEATURE ARTICLE16 TIME FOR SCHOOL

THE LONG34 TO FLOAT, OR NOT TO FLOAT?38 BANKS ON A ROAD TO NOWERE40 ANALYSIS: EUROZONE DEBT42 KEN FISHER44 UK INFLATION46 SPORTS EXCHANGE TRADING48 COMMODITIES: WINE MARKET 50 CHART WONK

THE SPREAD52 RESTAURANTS54 WEEKENDS56 CITY GUIDE: VIENNA60 TRAVEL

THE CLOSE66 GREAT TRADES68 WHO’S WHO72 GLOSSARY74 FUNNY MONEY

12

60

22

28

Look for the QR code to see an exclusive interview with Ricky Hatton

THE OPEN | UPS AND DOWNS


UPS&DOWNSFrom news stories to trading issues, a round-up of the things that have caught our eye this month

Send us your news, views,and unprintable gossip at:[email protected]

AmericAn businessmAn Stan Kroenke has raised his stake in Arsenal football club to 62.89%, with a view to finding an agreement to buy the rest of the club.

A takeover was triggered after the American, who already owns a host of US professional sports teams including the NBA’s Denver Nuggets and the NFL’s St. Louis Rams, bought the stakes of Danny Fiszman (16.1%) and Lady Nina Bracewell-Smith (15.9%).

Kroenke first acquired shares in Arsenal in 2007, when his company Kroenke Sports Entertainment bought 9.9% of shares in the Premier League club.

The majority of the remaining shares belong to Russian billionaire Alisher Usmanov (27%). The agreement values each share at £11,750 and the club at £731m. Usmanov

has come out swinging, and declared that he won’t sell his shares to Kroenke, but the fighting talk seems to be a mere rouse to push up the price.

Fears that the takeover by Kroenke might load the club with more debt have been allayed.

The statement to the stock exchange said: “The offer will not be funded by way of any debt finance (banks loans, payment in kind loans or other debt or quasi-debt interest bearing obligations) for which the payment of interest on, repayment of or security for any liability (contingent or otherwise) will depend on the business of Arsenal.”

How the takeover will affect Arsenal’s transfer policy is yet to be made clear.

Online pOwerhOuse Google has reported a sharp rise in first-quarter revenue after the first figures post the re-appointment of co-founder Larry Page at the head of the company were revealed.

The world’s leading internet search engine posted $6.54bn (£4bn) of net revenue in the first quarter of 2011, up 29% from $5.06bn over the same period twelve months ago.

Google currently has a 65% share of the US search engine market, and 90% of the

same market in Europe.After revealing the results, Google chief

financial officer Patrick Pichette said: “These results demonstrate the value of search and search ads to our users and customers, as well as the extraordinary potential of areas like display and mobile.”

Costs have also risen in 2011, with Google hiring a record 1,900 people in the quarter.

On hearing the news Google stocks fell 4% on the New York Stock market.

A us AppeAls court has denied ex-Enron chief executive Jeffrey Skilling a new trial. The court upheld all of Skilling’s 19 convictions which include conspiracy and fraud.

The court rejected arguments that incorrect direction given to the jury at Skilling’s original trial in 2006 meant that the former Enron chief was legally entitled to a new trial, even though last June a US Supreme Court ruled that the anti-fraud laws used to convict Skilling were used improperly.

Skilling was sentenced to 24 years in prison in 2006 for his part in a huge accounting fraud intended to cover up the state of Enron’s ailing finances from shareholders.

He was the highest ranking Enron employee to be sentenced after the energy firm’s collapse in late 2001. Founder and ex-CEO Kenneth Lay was also convicted under the fraud laws but died six weeks later before sentencing.

In slightly more encouraging news for Skilling, the three-judge Court of Appeal panel vacated his 24-year prison sentence, sending the case back down to a lower court for re-sentencing.

Skilling’s lawyer Dan Petrocelli said he would continue to fight to overturn the convictions.

StaN NOW the maN at arSeNal

GOOGle firSt-quarter reveNue See Sharp riSe

ex-eNrON chief DeNieD NeW trial


THE OPEN | UPS AND DOWNS


The singApOre sTOck exchAnge saw profits drop drastically last month after its failed attempt to buy Australia’s ASX stock market.

SGX’s income fell 10% to S$67m ($54m) for the period between January and March, compared to figures of S$74.6m over the

SiNGapOre exchaNGe iNcOme

maNcheSter uNiteD vOteD mOSt hateD cOmpaNy

Apple hAs AnnOunced that it is suing rivals Samsung over the latter’s new Galaxy range of electronics.

The Galaxy’s mobile phones and tablets are a “slavish copy” of Apple’s own iPhone and iPad, court papers filed last month claimed. The design features on the Galaxy products including the screen and the look of the icons are at the crux of Apple’s complaint.

The lawsuit accuses Samsung of violating Apple’s patents and trademarks, but Samsung have already hit back, saying that Galaxy product development is a result of full company research.

“Samsung’s development of core

apple takiNG tO SamSuNG tO cOurt Over iphONe aND ipaD “cOpyiNG”

They mAy be about to overtake Liverpool as England’s most successful side in domestic competitions, but Manchester United are already top dog in another altogether different field. In a survey carried out by Online Opinion Polls for The People, Sir Alex Ferguson’s side were voted the most hated company in the UK after 26% of those polled confirmed their loathing of the north-west club.

With 11 Premier League and seven First Division titles in their trophy cabinet, alongside three European Cups, 11 FA Cups, four League Cups, a European Cup Winners’ Cup, a European Super Cup and a World Club Championship, the club were deemed more detestable than second place Ryan Air who received 23% of the vote. Banking giants RBS and Lloyds only scored 17 and 16% of the votes respectively with the club’s hatred reaching 31% in the north-west and London.

A survey spokesman said: “Manchester United is possibly a victim of its own success,” although recent news that parent company Red Football Joint Venture announced losses of £108.9m for the 12 months ending June 30 2010 can’t have helped with Red Football’s total debt now standing at £590.4m.

While The Exchange was not invited to take part in the survey, it can quote company policy on the matter of Manchester United: “Employees must not look towards Sir Alex Ferguson and Wayne Rooney – both of whom have been charged by the Football Association this season for blistering attacks on referees and foul mouthed expletives at television cameras – for guidance on acceptable standards of behaviour.”

Rumours circulating the office, however, are that the (London born) editor is a huge fan. He was unavailable for comment.

technologies and strengthening our intellectual property portfolio are keys to our continued success,” the company said in a statement.

The Korean electronics giant also said that it will fight the allegations “through appropriate legal measures to protect our intellectual property”.

And with Samsung currently supplying Apple with microchips for a number of products including the MacBook Pro, things really could get nasty before all’s said and done. Not that we’re complaining, after all a bit of competition between the two tech giants can only be good for us consumers in the long run.

same period twelve months ago.The cost of the SGX’s attempted takeover

of the ASX was a reported S$12m, meaning that it is little surprise net profits have taken a nosedive in the latest reports. In more positive news, the exchange’s operating revenues rose 10% to S$168m from the same period a year earlier.

The SGX bid for the ASX was rejected by the Australian government on national interest grounds.

Despite failing in the bid to acquire the ASX the Singapore exchange has remained firmed in its ambition to expand, meaning that another international merger attempt could be on the horizon in the near future.


FEATURE


When I fIrst started trading currencies in the late 1980s, I was somewhat unprepared for the speed and volatility of currency markets, and how quickly they could move on a whim or a careless comment.

That is as true now as it was back then, and newbie traders need to be aware of a number of different factors when dipping their toes into the unforgiving waters of the markets, particularly forex. New traders need to be aware that currency markets are completely unregulated, and getting involved is comparable to swimming with sharks. For the unwary and unprepared an exploit that you enter into with the intention of being profitable can become extremely expensive, especially if you get the wrong side of a move.

This is why any new trader has to get themselves as educated as possible before embarking on a career, be it amateur or would-be professional, in the world of trading. If you’re new to forex or spread-betting you should first and foremost seriously consider attending educational seminars on the perils and pitfalls of trading. I would encourage anyone interested in participating in these markets not to skimp in this regard because of the clearly identifiable long-term benefits of having increased market knowledge and awareness.

It is important to understand that equity markets are a completely different animal to currency markets, and that the behavioural aspects of equity trading are completely different to other asset classes.

One of the first things we try and make clients aware of here at CMC markets is the art of preserving one’s capital and learning from common mistakes people make when first exposed to the FX markets. Whilst you could argue that you can learn much from the various books that are available, sometimes it is useful to experience first-hand the perils and pitfalls involved in trading FX at the micro stakes levels to better appreciate the nuances of how to trade and therefore get educated faster.

Training can take a number of different forms, from seminars and online webinars to

There seems to be a perception, somewhat misplaced I would say, that because something is freely available it must somehow be of lesser value than paid-for training because it is free, and that there must be a catch.

This is not the case. Whilst there are a good number of training sites that are certainly beneficial to your trading education, it is important to shop around to make sure you get the right information with which to prepare yourself for the markets. Historically we have offered free seminars at CMC Markets on the basis that if a client is forewarned and forearmed he or she is likely to stay solvent for longer, and as such trade with us for longer.

It is also important to understand that the learning process is evolutionary and something that happens over time. For example, even though I have been in the forex trade for twenty years I still feel that I am learning all the time, and never take the market for granted.

More than anything it is important for the new trader to adopt a style that they are comfortable with and not blindly follow someone else, a mistake I made when I first started out. Just because someone has more experience does not mean that they are always right about the direction of the market.

No-one can be right all the time, I’m certainly not, but the trick in making money in these markets is not just about being right, but also being quick to identify when you are wrong, in order to minimise any potential losses. It is not something that you can pick up from reading a book. This is why training and experience are so important when first exposing yourself to new markets and trading opportunities.

Using demo accounts is a good way to introduce yourself to the markets gradually, but I would stress that it is no substitute for the real thing. There is no substitute for that pit of the stomach feeling when it is your own money on the line. It completely changes your mind-set and attitude towards trading.

written articles such as those that can be found The Exchange and those that are free to clients of trading platforms.

Technical analysis training is also important with respect to identifying trends as well as significant support and resistance levels in different markets. You can argue about the pros and cons of charts and technical analysis, but from a risk management point of view and for entry and exit points for trading strategies, it is a key element of any good trader’s strategy.

One of the key drivers of currency trading is economic announcements. It is important to stress that to be successful you must understand the different macro-economic events that drive markets and the inter-relationship between interest rate differentials, bond markets and how these markets can affect currency flows.

Education is vital to being successful in fx markets. That being said, the problem most people encounter when first getting started in trading is the amount of training material available to them as well as any potential cost, which is why sometimes people are reluctant to take advantage of it.

With respect to the amount of educational information available a lot of the paid-for material out there is, in my opinion, a complete waste of money.

“newbie traders

need to be aware

of a number of

different factors

when dipping their

toes into the

unforgiving waters

of the markets”


FEATURE


Trading and invesTmenT can be a lonely business for individuals. Watching your screen, day-in, day-out, taking decisions on whether to buy or sell, hold and watch. Agonising over that loss-making position that you know in your heart you should have sold weeks ago. Of course, the ups, the profits and the ten-baggers make it all worth it in the end – but there is also another way to help yourself escape some of the more lonely aspects of a somewhat solitary profession. Take some time to attend live events, time to meet other investors and the companies that can help you, even meet new investment opportunities – and, most importantly, arm yourself with the latest investment and trading techniques to beat the market.

Keep up-To-daTe wiTh The laTesT invesTmenT and Trading TechniquesThe market is evolving all the time - new techniques are honed and developed, and successful investing strategies discovered as new and exciting areas open up. Attending a live event is one way to make sure that you´re on top of all these developments – by browsing the exhibition, attending the workshops and seminars and meeting and sharing ideas with other investors – it all adds up to a day well spent. At the end of the show you’ll leave the event feeling more confident, more informed and ready to make those desired profits.

“the market is evolving all the time - new techniques are honed and developed”


The last stop between you and the land of the profitable traders, the demo account

“there really is no rush to get into the markets before you’re confident that you’ll be profitable”

We’ve all been there. You’ve read the books, you’ve watched the pros, you’ve had the coaching. But standing on the tee for the first time (or whichever sporting metaphor you feel you can relate to most), the doubts begin to set in. And as you bury your tee into the ground and stand astride the ball your hands begin to feel clammy. It’s the eyes of the world on your back, burning a hole right through you, aching to put your mettle to the most rigorous of tests.

The result: well let’s just say that from personal experience it’s probably scuffed, short and very, very wide. If you’ve managed to make a botched job of your drive exceptionally well then you’ll find yourself in the car park much in the same way that I did the first time I played at my new club after moving home.

There are a whole host of reasons why people trying a new activity for the first time, be it professional or as a hobby, suffer in this way. But it can be boiled down to just one simple one: because they’re not very good. Sure there are those who have so much natural talent that they take to their sport like a duck to water. They’re called geniuses, and because there are so few of them.

The pertinent question isn’t “why are newbies not particular good despite all the lessons, training etc?”, but instead “how do I take the next step to improving my game?” And the answer’s an obvious one: practice.

Should I keep forking out three figures to play round after horrendous round? Well, I suppose I am improving fractionally each time I play, but it’s costing me a fortune and is pretty demoralising when the inevitable blow-up happens.

Or should I leave the course and head to the practice ground where I can work on different shots, approaches, styles and techniques until I’m confident I’ve got the practical and mental skills to combat whatever the real world has to throw at me, all of which will cost me nothing. You don’t need one of those geniuses to tell you the answer.

And why all this sporting analogy? Well, because the exact same principles apply in trading. Training sites, seminars and coaching are all vital cogs to the educational development of a good trader, but the final stage in the evolution to being profitable in the markets is practice and experience. It’s

in books but without losing an arm aand a leg for the pleaure.

“But won’t trading on a demo account cost you the money you could be making today?” I hear some of the more impulsive of you shout. Well no, actually.

The point to remember is that there really is no rush to get into the markets before you’re confident that you’ll be profitable and for the vast majority of traders that won’t be immediately. After all, the markets aren’t going anywhere. Trading on a demo account for six months will only make you a better trader, which means it will make you more money in the long run and save you money in the short term.

We asked Michael Derks, Chief Analyst at FxPro, to give us his opinion on demo accounts:

“Any would-be traders invariably try their hand on a demo account, which is essentially an account using only fictitious money. This provides potential traders with the opportunity to refine their trading strategies, understand how a particular trading platform works, and possibly to learn more about themselves in terms of trading style and approach to risk management. Fx trading platforms understand the benefits of these demo accounts – clients benefit from them (because all other things being equal they might become better traders), and once they are confident the transition to a proper funded account is much easier.”

So once you’ve acquired your new found trading knowledge use it to trade well. But remember that a stop off at the driving range will let you know if you really are as good as you think you are.

where new traders can ply their new found skills in real markets, safe in the knowledge that any rookie mistakes or misjudgments of strategy won’t cost them their entire trading account. A demo account is a replica of the real thing, meaning that it can teach you all things about the markets that you can’t learn

experimenting with techniques, tools and strategies to work out which ones work for you and which don’t, because this won’t be the same for every trader.

There are some who will learn the hard way, by plugging their cash into the markets and losing money until hopefully they learn enough to begin slowly clawing those sunken losses back. The more prudent novice traders, however, will realise that what they should be doing in the early stages of a trading career is operating on the “driving range” of the financial markets, a demo account.

All trading platforms have demo accounts

FEATURE


London OlympiaFriday, 20th May 2011

CREATE YOUR OWN SUCCESSFUL ALTERNATIVE INVESTMENT PORTFOLIO

Learn new skills at the independent investment •workshopsDiscover how to trade commodities•Meet and speak to new investment opportunities •at the investment exhibitionChoose from over 20 free seminars covering •a wide range of topics – from investing in

wine, art, stamps and cars to film investing and cleantechFind out what the experts are thinking at the live, •Lunchtime Summit “The Outlook for Alternative Investing versus Equity Investing” taking place at 1.00 pm in the main auditoriumMeet and mingle with like-minded • investors

Upcoming Events: 21st October 2011 (Stock Market Investing) 24th February 2012 (Forex)

How to Exhibit: For details on exhibiting at the London Investor Show, please contact Lisa Campbell on 020 7193 4541 or email [email protected]

How to RegisterTickets to the London Investor Show cost £25 each and include one free investment workshop (worth £25). As a reader of The Exchange, you can claim a completely complimentary ticket and workshop – just quote “exchange” when booking by phone, or input the code when booking online. Online: Visit www.londoninvestorshow.com and register online By Telephone: Call the Registration Hotline on 0131 208 0825

The London Investor Shows are organised by Investor Conferences (UK) Ltd. Registered in Scotland No 386077. Registered Office 3/2 Guardianswood, Ellersly Road, Edinburgh EH12 6PG. Telephone: 020 7193 4541 Fax: 0700 608 5812 Web: www.londoninvestorshow.com

Investment Bank Merrill Lynch recommends that investors typically have 10% of their portfolio invested in Alternative Investments. Attend the London Investor Show – Alternative Investing and Commodities and discover how YOU can create your own, successful, Alternative Investment portfolio.

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THE LONG | AnAlysis


By Nick Beecroft, Saxo Bank

Although you might not guess it to look at the remarkably resilient Euro, the Eurozone debt crisis rumbled on this month. To add to the drama, yet another domino toppled when the caretaker Portuguese government was forced to request a bail-out from the EU/IMF in the wake of a debt auction on 5th April which came perilously close to failure, raising fears that Portugal would be unable to honour the Euro 5bn of bond redemptions due in June.

Jose Socrates’ minority government had previously been forced to resign when opposition parties refused to support proposed austerity measures designed to address Portugal’s budget deficit.

Mainly as a result of domestic Euro-sceptic opposition in Finland, France and Germany, an announcement of the final architecture for the promised re-vamp of the current EU rescue fund, the European Financial Stability Facility, (EFSF), and its son, the European Stability Mechanism, (ESM), due to succeed it 2013, has been delayed. Both are key components of the ‘Grand Plan’ which we were promised would be forthcoming from March’s EU

leaders’ summit, but now we will have to wait patiently until June for the details.

Meanwhile, seemingly inhabiting a parallel universe all of his own, ECB President Trichet assured us at the post-ECB meeting news conference in March that the governing council would maintain ‘strong vigilance’ over inflation-code for an imminent policy tightening. Sure enough, they delivered this tightening on April 7th by raising their main policy rate by 0.25% to 1.25%, heralding what the market now expects will be a series of hikes over coming months.

The ECB is maintaining its stance that the question of raising rates is entirely separate from that of its provision of extraordinary liquidity to banks and sovereigns. However this is surely untenable over time. If banks and countries are on the brink of collapse, does that not affect the health and spirits of consumers and companies? Will that in itself not mitigate against a rise in inflation, without any need for a rise in interest rates?

The ultimate test awaits; in the light of Portugal’s bail-out, attention will turn to

The eurozone debT crisis: a long and winding road To nowhere?

Spain-El Grande. This crisis will grind on, mainly because the solutions being chosen are addressing an insolvency problem as if it were a liquidity problem. But never underestimate the will of the Eurozone governments to make it work, maybe at least until 2013 when their bail-out money becomes senior to other creditors under the ESM, as opposed to their current status as equal in the pecking order with private lenders.

Unstable equilibrium is probably the best way to describe the Eurozone status quo. With bond maturities totalling $502bn in 2011 in the PIIGS countries, the markets are still digesting the horrendous Irish bank stress tests results and the ongoing Portuguese political vacuum. Until elections in mid-June the question arises as to exactly who has a clear mandate to agree to the austerity measures that will no doubt accompany the EU/IMF bail-out? The whole cause of the minority government’s collapse was a failure to get opposition parties to buy-in to belt-tightening; the IMF’s demands will be even more burdensome.


PearlHolBorn, WC1VPearl Restaurant exemplifies many of the same traits as the gem sharing its name; opulence, beauty and distinction.

Pearl Executive Chef Jun Tanaka, who is best known for his regular TV appearances on UKTV’s Market Kitchen, has created a modern French restaurant with a refined menu, accomplished service and exquisite surroundings. The moment you enter the doors you are showered with a sea of pearls. The majestic walnut and marble dining room and lounge is accented with strings of pearls hanging from chandeliers, windows and walls and the pristine white dining tables are illuminated and dressed with pink blown glass tableware.

The menus at Pearl offer two and three course option lunch and dinner menus, as well as a six course degustation tasting menu. The modern take on classic French cuisine is exemplified in dishes such as the pan-fried Foie Gras with pickled rhubarb and poached Monkfish with seaweed and oyster tortellini. My meal began with an amuse-bouche of canapés displaying treats ranging from a duck spring roll to a mushroom risotto ball and stuffed cherry tomato. The flavourful bites awakened my taste buds and prepared me for the next course. For the starter I chose the roasted langoustine accompanied with a creamy scallop mousse, black spaghetti and fennel puree. The langoustine was cooked to perfection and the scallop mousse leant a welcomed creaminess and rich tone to the dish. When choosing the main, I went with the server’s recommendation, Lamb Wellington. As a self-acclaimed Wellington aficionado, I was pleasantly surprised by Tunaka’s elegant take on the traditional dish. Moist, perfectly cooked lamb was presented inside a flaky pastry with truffle filling aside roasted root vegetables of cauliflower, Brussels sprouts and glazed shallots. The truffles brought a depth and earthy flavour to the dish that made this Wellington stand out significantly from any I’ve had previously. I would highly suggest this dish for any lamb lover.

While the menus, well presented dishes and exquisite decor alone make Pearl an amazing choice to for any diner looking for exquisite culinary entertainment, the libations on offer compliment the dining experience to a tee. Enjoy a bottle or two from the award winning list of over 200 wines, all of which are stored in a brilliantly crafted cellar and served by eloquent and informative sommeliers, or partake in one of the many perfectly mixed cocktails served with distinction in the lavish bar.

Some say diamonds are a girl’s best friend, but after visiting Pearl I have a new gem of choice. Jennifer Von Strohe

108 MaryleBone laneW1u108 Marylebone Lane is a quaint and casual brasserie located in The Marylebone Hotel. The ambiance is relaxed and the large informal bar and lounge area makes 108 the perfect choice for after work drinks with friends or colleagues.

The small dining room offers a menu that presents simple and delicious brasserie dishes. Use of local and fresh ingredients is what makes 108 a stand out amongst the rest of its kind. You can find several of Marylebone’s local food suppliers on the menu, such as acclaimed and award-winning La Fromagerie, The Ginger Pig and Biggles Sausages.

Choose from a bar menu with selections of small bites, sandwiches and cheese plates or dine in the restaurant with choices such as Salad of Smoked Gressingham Duck Breast, Poached Halibut with Lobster Cream and Baked Cannelloni of Aubergine with Ricotta.

On my visit to 108, I was excited to see Long Horn aged beef from Ginger Pig as an option for a main. I quickly grabbed the opportunity and challenged the kitchen to make a perfectly medium rare cooked filet. While I waited for my steak I enjoyed a starter of Italian cured Prosciutto Ham served with rocket, figs and shaved Parmesan. It was clear that only the freshest ingredients were used and the dish exemplified both flavours of the parmesan and ham magnificently. Once my steak arrived I was more than happily surprised. The steak was plump, juicy and cooked to perfection. The taste and texture was exquisite, a tell tale sign that the meat was properly aged for several days. While my charcuterie starter and steak main was more than enough to satisfy my appetite, it was difficult to say no when I was offered the mouth-watering dessert menu. Our server listed off delights such as Pear Tart Tatin, Bitter Chocolate Fondant and Baked Lemon Tart with Cranberry Compote. I chose a Chocolate Tart with Orange, the pastry was flaky and the rich chocolate filling melted in your mouth. It was a lovely end to my feast of local Marylebone fare.

If you are looking to take in all the culinary treats that the Marylebone area offers, you need not go any further than Marylebone 108. The food is local, the atmosphere is comfortable and the location is great. Jennifer Von Strohe

THE SPREAD | RESTAURANTS



The MayfloweRSouthamptonSituated in the town centre, The Mayflower is a grand old sight in a city lacking much in the way of striking architecture.

With an eclectic seasonal balance of blockbuster shows and small indie productions, The Mayflower is a real jewel on the South Coast.

Because it is by far the most influential cultural hotspot in the area, tickets don’t hang around so book early to get the best seats.

To make the most of the weekend, stay at the De Vere Hotel, only five minutes walk from the theatre, and in prime location for the many bars and restaurants you’ll find on Oxford Street. www.themayflower.com

The GRandLeeDSStanding out in the newly resurgent Leeds is The Grand; an opulent opera house which was built over a century ago and houses some the most ornate décor you can see anywhere in the UK.Featuring genuinely inclusive but challenging seasons, there really is something for everyone here, and you will certainly be able to find something to fit your tastes as runs tend to not be for more than three days.For a cool and trendy stopover, head to the Park Plaza, Leeds, for a contemporary base in which to enjoy your dramatic break.www.leedsgrandtheatre.com

The hayMaRkeTBaSingStokeAs a weekend getaway location, Basingstoke isn’t somewhere that gets a mention too frequently. However, whilst it does suffer from many ‘new-town’ issues, it does have a wonderful asset in The Haymarket, which is quite unlike anything in the area.

Featuring seasons which take in opera, classical music, comedy, independent shows and much more, The Haymarket is a gem in need of your appreciation.

Stay at Tylney Hall for a liberal dose of Hampshire country air, and you’ll have had a truly refreshing weekend.www.anvilarts.org.uk

The new TheaTReCarDiffSoon to reach its 200th birthday, The New Theatre is more contemporary than almost anything else you’ll find in the Welsh capital.As you might expect from a nation which adores singing as much as Wales, the upcoming what’s on list is filled with lung-busting tunes. Not be overshadowed though, the venue is noted for its electric atmosphere as much as its creative seasons.Complete your weekend by staying at the outstanding St Davids Hotel and Spa; a five star resort on the seafront, to blow the cobwebs away and allow you to enjoy your cultural break in style.www.newtheatrecardiff.co.uk

THE SPREAD | WEEKENDS



THE SPREAD | CITY GUIDE


“48 dAys woUldn’T be enoUgh TiMe To fUlly AppreciATe The beAUTy ThAT is hoUsed in The ciTy, leT Alone 48 hoUrs”

CulTuralThere simply aren’t enough words to describe the wonderful cultural sights in store on a visit to Vienna, and 48 days wouldn’t be enough time to fully appreciate the beauty that is housed in the city, let alone 48 hours. However, if you’re cramming everything into a weekend you should get down to the Museum Quarter, where you’ll have dozens of museums and exhibitions to go along to, depending on your tastes.

A really great way to see as much of the cultural city as possible is on a Segway Tour. These amazing gadgets allow you to zip through traffic and pedestrians alike, and the guide will chat you through the remarkable history and architecture that surrounds you. Be warned though; I guarantee that you will want one afterwards, as plain old walking will seem so passé.www.segway-vienna.at

exTravaganCeThere’s only one place you’ll find the real cream

around on the same bit of carpet. Here, children are expert ballroom dancers by the age of twelve, and it can be quite intimidating to join the dance floor, when everyone else is so clearly excellent at it. You can reduce the fear-factor by attending a dance lesson in the daytime before, and you won’t find better than the award-winning Elmayer’s Dance School. Elmayer himself is the Austrian equivalent of Len Goodman on Austrian TV’s version of Strictly Come Dancing. He is utterly charming, and a great teacher, who will guide you through the basics and help you enjoy the Ball so much more.www.elmayer.at

hoW To geT ThereBMI has just launched new routes to the city, flying from Heathrow.

It’s also worth noting that their business class is outstanding, and now is the equal of any of its competitors with its exceptional comfort and service.www.flybmi.com

of society on a Saturday night, and that’s at the Ball. Like a real-life fairy-tale city Vienna lives for the pomp and ceremony of dancing at the opulent Balls that take place in the major venues around the city. These black-tie events are wondrous and terrifying places in equal measure; simply sensational events to be at, but awfully scary if dancing to you means shuffling


my heart was telling me there was only one possible decision I could have made.

After tying up his affairs in the UK, Dukes returned to Dubai to collect the keys to his Lifestyles of the Rich and Famous style mansion on the Palm Jumeirah, and had the distinction of being the only resident on the development for weeks as work continued around him. Within a few short months, building had been completed and the world’s newest, and most exclusive community had sprung up, creating his perfect paradise hotspot.

However, the endless work-free holiday couldn’t go on forever and soon Dukes felt the familiar drive to accomplish.

“The first few months were incredible, and felt like they were making all the years of toil in business worthwhile. However, after a while I began to miss getting up in the morning and achieving, and so looked for something to focus my attentions on.

After much thought, it finally came to me that I could allow others the chance to experience my dream Dubai life, and so began buying up other villas and making them even more luxurious than my own, so I could offer others the chance to rent this life even for a short while.”

It wasn’t long before Dukes had ten villas on the Palm, and they were in high demand after being acknowledged as the very best available, with exceptional standards of décor and service from his house staff.

“Having the ten luxury villas makes all the difference from living life as a permanent holiday, and feeling like I am keeping my hand in with business. However, unlike before where every day merged into another grey day, these days I am living a dream lifestyle and keeping a perfect work/life balance, meaning I feel motivated but completely satisfied.

Had I not listened to my heart all those years ago, I would be back in England slogging away endlessly, but that one decision to go with my gut-instinct has changed my life forever, and I would urge everyone who falls in love with a holiday place to be brave and go for it.”

Dukes’s story has the archetypal happy ending, but it should be noted that, like any decision where the head and heart say different things, what’s good for one isn’t necessarily best for another. However, as the SAS (and Peckham’s finest) say, ‘He Who Dares’. Do you?

You can stay at Andy Dukes’ jaw-dropping villas on the Palm Jumeirah, Dubai by visiting www.dubai-holiday-villa.com. We highly recommend them. And who knows, maybe

THE SPREAD | Travel



THE CLOSE | INFORMATION

68 | THE EXCHANGE |May 2011

WHO’S WHO IN SPREAD BETTING?Whether you’re new to nancial markets or just looking for a better deal, The Exchange has all the info you need. By Toby Anderson

ETX CAPITAL ETX Capital is the trading name of Monecor (London) Limited. The company joined interdealer broker Tradition in 2000 and in 2002 Monecor became the retail derivatives arm of Tradition. In 2007 Robin Houldsworth and Peter Shalson acquired Monecor for an undisclosed sum from Tradition UK. The name ETX Capital was adopted in 2008. What’s their pitch? ETX Capital provides institutional, high net-worth and retail customers with multi-asset dealing capability through contracts for difference and financial spread betting products. It seeks to offer high levels of customer support and guarantees total client confidentiality. ETX offers spreads from just 1 point and margins from 1%. Anything for newbies? ETX Capital provides up to £250 cover if the client is not in pro to within the first 10 days of trading. Contact www.etxcapital.com 020 7392 1430

PROSPREADS ProSpreads is a Gibraltar-incorporated division of London Capital Group. What’s their pitch? ProSpreads’ advanced trading technology provides the same functionality as direct market access, delivering execution in a fraction of a second, extremely

tight spreads and no re-quotes. It offers speculators a unique trading platform with direct market access functionality to trade the major indices, commodities and currencies. Anything for newbies? Clients can open an account with £1,000 and take advantage of the same technology used by direct market access brokers and futures traders. Account holders have access to a complete package of trading tools and a number of education options, including a demo account allowing them to test trading strategies. Contact www.prospreads.com 0800 804 8772

GEKKO GLOBAL MARKETS Used to be known as VDM, the company now styles itself Gekko Global. We are not sure quite why. Users rate the speed of execution and the simple-to-use platform. What’s their pitch? They claim to have highly competitive spreads (1 point on the UK 100 through the day and up to 8pm), low initial deposits, low minimum trade sizes, a user-friendly platform, free guaranteed stops and cutting edge technical research. All of which ticks a lot of boxes for us. Anything for newbies? You bet. A cash bonus of 25% of your initial stake up to a maximum matched amount of £500. That’s the most generous offer out there. Contact www.ggmarkets.com

020 3326 2131

CANTOR INDEX Cantor Index is a financial spread betting company, established in 2000. Part of the global Cantor Fitzgerald group, Cantor Index is open 24 hours a day, and offers bets on a wide range of markets from shares and indices to bonds and commodities. What’s their pitch? Cantor Index has a comprehensive data service which allows clients access to detailed market reports as well as news from third-party sources, and state-of-the-art stock screening tools. With specialised forex and commodity pages, as well as an economic and company diary, the data service has detailed financial information available free to all account holders. Anything for newbies? Cantor Index offers new clients a £50 account opening bonus. To qualify for the offer clients simply have to fund at least £250 and have placed a minimum of two non-equity bets (each with a stake of at least £2 per point) within 1 month of account opening. The offer is available until the 30th November 2010. Contactwww.cantorindex.co.uk 0207 894 8040

PAN INDEX Pan Index was established in Ireland in 2001 and focuses

predominantly on China but also retains operations in Europe. What’s their pitch? Pan Index seeks to offer clients secure online access to trade on stock indices, forex and commodities, with competitive spreads and low margin requirements. The company has a multi-lingual customer service team that operates 24 hours a day. It offers streamed spread trading news, analysis and professional charting, giving clients continuous access to up to date market information. Anything for newbies? Compared with many, Pan’s front end is easy to use and negotiate – important for beginners. Contact www.panindex.com +353 1855 9404

SPREAD CO The Spread Co group of companies, with offices in London and Singapore, is a specialist provider of retail derivative trading products worldwide. It provides the facility to bet on CFDs, forex and the usual range of spreads. What’s their pitch? “The Spread Co trading platform is the simplest and most user-friendly CFD platform I’ve seen,” says Alpesh Patel, a professional trader. Anything for newbies? A new account funded with £300 or more allows the client, once having placed four qualifying trades, the opportunity to take on Head Trader Rajesh Patel in a one day, head to- head challenge. If the client beats him, Spread Co will double the client’s profit by



online spread betting in 1999. Itis part of the City Index group.What’s their pitch?Finspreads sells itself ontransparent and fair prices. Itpublishes the size in whichit is prepared to deal at its quoted price, meaning whatyou see is what you get.Anything for newbies?New account holders are offeredup to £100 in trading credit andwhile you’re learning the ropesyou can trade as little as 10p perpoint for the first eight weeks ofyour account. After that, tradesstart as low as 50p per point.Contactwww.finspreads.com0207 150 0400

GFT UK GLOBAL MARKETSGFT Global Markets is a whollyowned subsidiary of the USforex and futures dealing firmGlobal Futures & Forex anda sister company to worldleadingonline forex dealingfirm Global Forex Trading.What’s their pitch?GFT’s trading software, DealBook360, is capable of handlingvirtually any kind of order. Exceptyour lunch. DealBook is a softwareplatform that streams data directfrom the dealing desk to theclient, allowing them to operateusing the most up to date prices.Anything for newbies?GFT offers a 5% depositmatching scheme for all of itsnew spread betting customers,hoping to draw even moreattention to the potential taxbenefits offered to investorsby way of spread betting.

Contactwww.gftuk.com0207 170 0770

IG INDEXIG Index was initially establishedto give investors the opportunityto bet on movements in theprice of gold, without having toactually buy or sell the physicalcommodity in the market. Whenfounder Stuart Wheeler hit uponthe idea of trading the price ofgold as an index, IG Index wasborn, laying the groundworkfor financial spread betting asit is now known in the UK.The IG Group has over 120,000clients worldwide, makingmore than four milliontransactions per month.What’s their pitch?IG Index has been responsiblefor pioneering several types offinancial spread betting products,including the innovative Binaryand Bungee Bets, which offerclients yes/no and bouncebackpropositions. All this isavailable on its PureDeal tradingplatform which features PriceImprovement technology andone-click dealing. There’s amobile phone platform too.Anything for newbies?IG offers two types of account:the Limited Risk Account willcost a few points in terms ofthe spread, but it means you’llhave risk management in placeand won’t lose more than yourdeposit. The Plus Account hastighter spreads and options onorder types including LimitedRisk orders and Trailing Stops.

Contactwww.igindex.co.uk 0207 896 0011

PADDY POWERPaddy Power Trader is a unit ofthe ever-popular bookmakers.Incidentally, there was no PaddyPower; the name comes from aresult of the merger betweenthree bookmakers, none ofwhom was called Paddy.What’s their pitch?PPT aims to be the best valueoffer in the market with, forexample, just a two-point spreadon cable. There is a strong analystand recommendations offering,with targets and suggestedstop-losses. There’s a useful long/short percentage indicator soyou can see what your fellow PPtraders think about various bets.Anything for newbies?Deposit £200, trade four times,and they’ll top you up by £100. Inaddition there is the usual suite ofseminars and online help videos.Contactwww.paddypowertrader.com0207 456 7041

CAPITAL SPREADSCapital Spreads is anotherdivision of London Capital Group,providing the expectation ofa solid platform and financialstability to the CS offer.What’s their pitch?Capital Spreads allows clients totrade in many financial productsusing one of the several majorcurrencies from one platform.It also offers a limited marginpolicy, where clients are required

to deposit only the maximumvalue of their stop-loss (plus20%). This means that largesums of capital are not tied upfunding the spread bettingaccount. It also says it offers‘extremely’ tight spreads andoffers them for far longer thanmany of its competitors.Anything for newbies?A nice interactive tutorial, anda load of other learning tools:‘take a tour’, user manual, FAQssection, free seminars plus theusual practice account stuffedwith 10,000 practice pounds.Contactwww.capitalspreads.com0207 456 7020

TRADEFAIRLinked to the phenomenallysuccessful Betfair, Tradefairoffers a wide variety of markets.The no-nonsense interfaceoffers customers thousandsof financial instruments withsome of the tightest spreadson one of the most reliablespread betting platforms.What’s their pitch?Simple but sophisticated frontendwith low spreads. Nothingmuch new there. The USP hereis Autochartist, which can sendsignals about significant potentialtrading triggers as well as allowyou to customise your own charts.Anything for newbies?Free subscription to infoservice ADVFN, plus £100matching when you depositand make a few trades.Contactwww.tradefair.com020 7456 7071


72 | THE EXCHANGE |May 2011

TRADING GLOSSARYWelcome to The Exchange financial glossary. We’ll be updating everymonth and we welcome additions (decent and clean, please) – bottle ofchampagne for each issue’s best suggestion. [email protected]

A ABS Asset-backedsecurities; ie. securitiesbacked by mortgage

loansor suchlike which areobtainable if the creditor defaults.

ACTUALS The physical assets behind commodity securities.

ADR American Depositary Receipt. These are sharesof foreign companies listedon exchanges in the US.

ALEXANDER’S FILTER A method that measures the rise or fallof a share price in percentageterms over a given period. Afast rate of increase suggestsa buy; the reverse, a sell.

AMERICAN OPTION Can be exercised at any time during thelife of the contract. Europeanoptions, by contrast must beexercised on the expiry date.

ARBITRAGE The action of profiting from the differencein price for similar securitiesin different markets.

B BACK MONTH The traded future or option that is due to expire latest.

BACKWARDATION A situation within futures markets wherethe cash price is greater than the price for future delivery.Such a scenario often occurs when supply of a particular commodity is short but the futuresprice remains low because the expectation remains that further supply will come online in the near future. See Contango.

BEAR An investor who is essentially pessimistic about the fundamentals of a given market. So called because a bear fights on its hind legs, moving its paws in a downward motion.

BEAR RAID The attempt to push down the price of a security, most often by SHORT

SELLING.BEAR TRAP The belief that the market will start to fall having risen significantly, there by leaving short sellers trapped by increasing prices, forcing them to cover their positions by buying stock at higher prices.

BED AND BREAKFAST DEAL A transaction where by stock is sold and subsequently bought back after the end of the tax year, allowing shareholders to register either or a loss or a profit for tax purposes.

BELLS AND WHISTLES Feature sadded to a security put up for sale to attract investors or reduce the costs assumed by the issuer.

BID/ASK SPREAD The difference between the price at which adealer is prepared to buy and the price at which they will sell. The spread between the best bid and the best ask (or offer) is sometimes known as the touch.

BLUE CHIP COMPANY A long-established company with a long and strong record of profitability and endurance. The term is taken from the most expensive chip on a poker table.

BOTTOM FISHING The practice of buying shares when they lie at a level the investor believes is unlikely to decline further. The same term is also used with respect to companies buying competitors that are cheap or failing.

BOTTOM UP An investment strategy whereby investors pick stocks, rather than rely upon achieving a balanced weighting in each sector. Such a strategy is based upon the management of individual companies rather than market or economic trends. The opposite of Top Down.

BUCKET SHOP A brokerage, often from overseas, that sells shares with little underlying value at, by definition, elevated prices.

BUFFER STOCK A stockof commodities held by an international entity, which seeks to buy and sell from its stockpile as a means of maintaining price stability.

BULL An investor who believes that the market will rise. So called because the raising ofthe head (denoting a command to buy a security) is redolent of the action of a bull raising its horns before attacking.

BULL MARKET A market where prices have risen significantly over a prolonged period of time.

C CALL An option giving the holder the right to buy an instrument for a particular price within a set time.

CALLABLE Callable bonds give an investor the right to redemption at a set price on a set date.

CIRCUIT BREAKERS When an exchange imposes the closure of trading after prices have fallen by a certain percentage- a move designed to restrict so-called panic selling.

COCKTAIL SWAP A mixture of different kinds of swaps. Often used to spread risk on large deals.

CONTANGO A situation in which futures prices rise progressively as the maturity date moves further away from spot. The increase reflects the addedcost of storage and insurance for commodities. Contango isthe opposite of backwardation and is the normal relationship between spot and future prices.

CREDIT RATING The assumed creditworthiness of a company or sovereign nation issuing debt securities and their ability to repay the investor. Credit ratings affect the ability of a government or company to secure financing from banks and also inform the price their securities might command on the open market.

D DEAD CAT BOUNCE A rise in a security or broader market following a sustained drop, followed by

another precipitous drop due to a lack of change in the fundamentals of said financial instrument or market.

DISCOUNT A derivative that is trading below the current market price it is said to be trading at a discount.

DOUBLE DIP A second drop in a market or economy after significantly dropping for first time.

DUTCH AUCTION An auction in which the price is gradually lowered until a bid is secured. That bid then becomes the price at which the offering - such as US Treasury Bills - is then sold. The term is often synonymous with tenders.

E EXPIRY DATE The date at which a security matures. It can no longer be traded thereafter.

F FAIR VALUE The priceat which a security canbe expected to trade.

FALLEN ANGELS Bonds that have fallen below a previously held investment grade, becoming junk.

FIBONACCI NUMBERS A mathematical phenomenon described by 13th century mathematician Leonardo Fibonacci, whereby the sum of any two consecutive numbers equals the next highest number. The system is used by technical analysts to establish price objectives.

FILL OR KILL An order to buy or sell stock at the particular moment that a security reaches a certain price. FOKs are usually initiated when an investor wants to buy a large chunk of stock at a particular price.


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