LONDON, June 25, 2011 /PRNewswire/ --
CFD trading has only been around since the early 1990s, but in a short space of time it has become an invaluable method of speculating on financial markets and hedging investments. CFD trading (http://www.cityindex.co.uk/cfd-trading/) was originally developed as a simpler way for hedge funds to short sell in the London Stock Exchange.
It soon became available to individuals, and part of the attraction of CFD trading was that it allowed a trader to benefit from leverage and avoid stamp duty on any profits, neither of which were options afforded by standard share dealing. However, the leverage also meant that traders could lose more than their initial deposit.
CFD trading also allowed - and continues to allow - traders to speculate on markets without owning the underlying shares. This meant CFD traders were able to sidestep the time-consuming and expensive exercise of borrowing stock to trade on a declining market.
Since the 1990s, CFD trading has become increasingly accessible. During the dot com boom, online trading platforms came to the fore: by the turn of the century CFDs were widely available in the UK. Most recently City Index, a provider of spread betting and CFD trading, enhanced the industry further with the launch of its multi award-winning mobile CFD trading platform - City Trading™.
CFD trading is now available on many more markets than just the London Stock Exchange. To find out the range of markets offered by City Index, visit: http://www.cityindex.co.uk/range-of-markets/
Spread betting and CFD trading are leveraged products which can result in losses greater than your initial deposit. Ensure you fully understand the risks.
About 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, we transact in excess of 1.5 million trades every month in over 50 countries. We provide access to a range of instruments including margined foreign exchange, contracts for difference (CFDs) and, in the UK, financial spread betting.
We constantly look to improve the performance of our platforms and expand our range of services. The result is our customers benefit from innovative trading tools with transparent pricing, competitive spreads, and a high standard of customer support. For more, visit http://www.cityindex.co.uk/
SOURCE City Index