Demand for shorting and hedging solutions is increasing among UK retail traders, according to a research from ETP issuer GraniteShares.
Despite this rising interest, nearly 33% of traders reported being unable to short stocks or hedge positions, often due to a lack of knowledge or restrictions from their brokers.
The study has also revealed that less than one-third of traders are aware of ETPs for shorting stocks, and only 19% have used short or inverse ETPs to benefit from falling share prices.
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Will Rhind, founder and CEO of GraniteShares, commented: “Investors are becoming more sophisticated and looking to benefit from strategies used by major institutional investors, leading to growing demand for products which can enable them to short stocks or hedge profits. Short and Leverage single stock ETPs are widely available and listed on the London Stock Exchange offering the opportunity to do so.”
