How Will You Trade CFDs on Facebook Shares in May?

LONDON, May 9, 2012 /PRNewswire/ --

Almost a year after fellow social networking company LinkedIn's public trading debut, Facebook has announced it will begin trading on May 18, 2012.

Following months of rumours, Facebook IPO will officially price its shares on May 17, 2012 and start trading the following day on the Nasdaq Exchange.

Those CFD trading with City Index will be able to take a position and potentially profit from the company's future share price movement - regardless of whether Facebook's shares move up or down.

LinkedIn Shares Doubled in 24-Hours

On May 19 2012, the social networking company LinkedIn - which was started a decade ago in one man's living room - debuted on the New York Stock Exchange.

In its first day of public trading, its share price rose 171% - closing at $94.25 (more than 109% above the $45 IPO price).

In the days before the 19th, LinkedIn proposed a price range for the IPO; valued at just over $3 billion.

However, following its first day of trading - the company was worth nearly $9 billion.

What to Expect from the Facebook IPO

LinkedIn was the first prominent US social networking company to publicly test investor demand for social media companies in the marketplace.

At the time, other companies under the umbrella -Facebook, Twitter and Groupon - were all expected to go public in the months following.

To some extent, this was correct; in November 2011, Groupon went public and saw its share price jump 56% at the start of trading.

However, what could be considered the two pinnacles of social networking - Facebook and Twitter -have yet to follow suit. Until now that is.

Whilst Twitter remains unconfirmed, Facebook has set a date (May 18 2012).

But what can we expect from Facebook and will LinkedIn and Groupon's debuts impact Facebook's IPO?

Trade CFDs on Facebook Shares

On May 18 when the US markets open, investors choosing to trade CFDs on Facebook shares will be able to take a position with City Index for only a small initial deposit - a small percentage of the underlying market's value.

In addition, at present in the UK - CFD trading is exempt from Stamp Duty*. This enables investors to enhance their profit potential.

As mentioned above - due to its leverage feature, you can trade on this major company for a small initial deposit. However, leverage is a double edged sword meaning that the potential for both profits and losses is increased significantly.

Ensure you fully understand the risks of CFD trading before you take a position.

*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.

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 wide range of instruments including margined foreign exchange, CFDs and, in the UK, financial spread betting with City Index.

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. Visit http://www.cityindex.co.uk/ for details.