How to Trade CFDs on the Falling Share Price of Clinton Cards

LONDON, May 10, 2012 /PRNewswire/ --

As Clinton Cards is forced into administration, you could profit from its falling share price by trading CFDs with City Index.

On the morning of Wednesday 9 May, Clinton Cards said it was likely to enter into administration later in the day, leading to shares in the embattled retailer being suspended from trading.

The firm's share price has fallen nearly 90% over the past two and a half years, and when its banks - Barclays and Royal Bank of Scotland (RBS) - sold its £35 million worth of loans to its biggest supplier American Greetings yesterday, only for them to call them in soon after; the end seemed nigh.

Joshua Raymond, Chief Market Analyst at City Index, commented: "The swift deal and immediate calling in of the loans will inevitably leave a rather sour taste not just in the mouths of its shareholders, but in the UK retail sector in general with some eyebrows raised in the City."

Why trade CFDs in a falling market?

Through CFD trading provider City Index, you can take a position on a market's future price movement regardless of its direction.

Offering some of the tightest spreads; CFDs are available to trade over 12,000 global markets including currencies, commodities, indices and of course, shares - such as Clinton Cards.

If you believe a particular market will rise, you go long and buy. However, if you think a market will fall; you go short and sell.

For example, you decide to buy and go long on a market as you think it will rise. If you are correct and the market's price moves in your favour - up - you will net a profit for each point that the market's price increase.

However - if the market moves against you, and goes down - your losses will increase with every point by which the price falls.

Why 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, they transact in excess of 1.5 million trades every month in over 50 countries whilst providing access to a wide range of instruments including margined foreign exchange, CFDs and, in the UK, financial spread betting.

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.