Can Trading CFDs on RBS Shares Heighten your Profit Potential?

LONDON, May 8, 2012 /PRNewswire/ --

You can take a position on the major indices markets with CFD trading provider City Index, whilst benefiting from paying no stamp duty* through trading CFDs.

The Royal Bank of Scotland (RBS) reported better-than-expected first-quarter earnings for 2012 before the UK markets opened on Friday 4 May.

The state-owned lender posted operating profits of £1.2 billion; a stark and welcome contrast to the £800 million profit expectations for the first-quarter of 2012.

RBS Shares Impact CFD Market

As a result of this report, early morning trading saw RBS shares charge to the top of the FTSE 100 leader board, rallying 1.67%.

Speaking this morning [4 May] about the market surge, chief market strategist at City Index, Joshua Raymond, commented: "The share price rally of 1.67% would undoubtedly have been stronger were it not for investors buying into the banks share price in the last week after both Barclays and Lloyds beat expectations,"

Adding: "With most investors not expecting them [RBS] to beat forecast by the margin they have done so, greater demand for RBS shares has been seen in early trading."

Can CFDs Heighten Profit Potential?

As an alternative to more traditional forms of trading, investors can heighten their profit potential by trading CFDs on margin (also known as leverage).

The margin feature allows you access to over 12,000 financial instruments for only a small initial deposit between 1% and 10% of the underlying market's total value.

In addition, all CFD trades are exempt from UK stamp duty*.

These features combined; investors are able to magnify their potential profits.

However, it is important to remember that as a margined product you could lose more than your initial deposit if prices move against you. Ensure you full understand the risks before placing a CFD trade.

Trade CFDs with City Index

Today more and more individual traders are discovering the benefits of derivatives, and many of them are discovering them through a City Index trading platform.

As a group, City Index transact in excess of 1.5 million trades every month in over 50 countries. We provide access to a wide range of instruments including margined foreign exchange, CFDs and, in the UK, financial spread betting.

City Index constantly strives to improve their performance across their professional trading platforms and expand their range of services.

The result is their customers benefit from innovative trading tools with transparent pricing, competitive spreads, and a high standard of customer support. Visit http://www.cityindex.co.uk/ for details.

* CFD trading is exempt from UK stamp duty. However, tax laws are subject to change and depend on individual circumstances. Please seek independent advice if necessary.