CFD Trading: From the Trading Desk to the Mobile Phone

LONDON, June 25, 2011 -

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 ( href="www.cityindex.co.uk/cfd-trading/">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 href="www.cityindex.co.uk/spread-betting/">spread
betting and CFD trading, enhanced the industry further with the
launch of its multi award-winning href="www.cityindex.co.uk/trading-platform/mobile-trading-platform.aspx">
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: href="www.cityindex.co.uk/range-of-markets/">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, href="www.cityindex.co.uk/cfd-trading/what-is-cfd-trading.aspx">
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
href="www.cityindex.co.uk/">www.cityindex.co.uk/

Contact: Joshua Raymond, City Index, +44(0)20-7107-7002, joshua.raymond[at]cityindex.co.uk