LONDON, July 4, 2012 /PRNewswire/ --
Barclays Chief Executive Bob Diamond resigned today (July 3) in wake of the inter-bank lending rates scandal which lead to a fine of £290 million by the Financial Services Authority (FSA).
Following Diamond's resignation, how will you profit from potential falls in the bank's share price?
Through CFD trading provider City Index, you can take a position on over 10,000 financial instruments, including Barclays' share price, for only a small initial deposit.
Below, we look at how you can potentially profit in this volatile market.
Diamond Resigns following Scandal
Reportedly encouraged by the head of the Bank of England and FSA, Bob Diamond resigned at 07:00 BST Tuesday July 3.
Diamond stated that his decision was based on the risk that external pressure on the bank would 'damage the franchise'.
On Monday afternoon, Prime Minister David Cameron had announced a parliamentary review of the banking sector following the record breaking fine.
The parliamentary committee of inquiry will have full access to 'papers and officials and ministers', including those from the last government, stated Cameron.
The aim of the review is to ensure that the UK has the 'toughest and most transparent rules' of any major financial sector.
Diamond will still appear before MPs on Wednesday (July 4).
Can I Profit if Barclays' Share Price Falls?
Yes. When trading Contract for Difference (CFDs) you can profit from a market that either rising or falling.
If you believe a market will rise, you would go long and buy a CFD trade. If the market moves in your favour, you will profit in line with every point that the market rises.
Alternatively, if you believe that a market will fall, you would go short and sell a CFD trade. If the market moves in your favour, you will profit in line with every point that the market falls.
How is CFD Trading Different to Trading Shares?
A CFD is an agreement between two parties to exchange the difference between the opening and closing price of a contract.
Therefore, you are trading on the future price movement of an underlying market, as opposed to trading physical shares in that market.
Trading CFDs enables you to take a position for only a small percentage of the underlying instrument's total value - allowing for easier access to over 10,000 markets with City Index.
Start Trading CFDs Online
It's easy to start trading CFDs online. Simply apply for an account today and soon you could be taking a position on popular markets such as indices, shares, currencies and many, many more.
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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.
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.
CFD trading is a leveraged product which can result in losses greater than your initial deposit. Ensure you fully understand the risks.
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.
SOURCE City Index