Guide to Trading CFDs Following Positive Corporate Earnings

LONDON, June 13, 2012 /PRNewswire/ --

Use our guide to start trading CFDs following the release of positive corporate earnings, using a real-time example with figures from Carclo.

We show you how you can go long and buy CFDs on the technology-led plastics firm after they reported a 'solid performance' for the first half of the year.

Carclo Lead Gains on the London Stock Exchange

Carclo reported this morning (Tuesday 12 June 2012) that they had seen 'strong growth' over the past twelve months.

The news saw them lead the gains on the London Stock Exchange in early trading this morning with Carclo stocks rising 4.40% on the London Stock Exchange as of 10:58 BST.

Revenue Climbs 5.2% in 12 Months

The report released by Carclo showed that in the past year revenue climbed 5.2% to £93.3 million with underlying profit from operations also rising sharply with an increase of 12.3%; bringing the total to £6.6 million.

In addition, cash generated from operations also climbed from £6.8 million in the previous year (2011) to £10.4 million - with free cash flow also up from £1.1 million to £6.5 million.

How to Trade CFDs

You can trade CFDs on over 10,000 financial instruments with a City Index trading account.

These markets include popular indices such as the FTSE 100 and Wall Street, currencies such as the GBP/USD and EUR/USD and individual shares such as Carclo's (shown as 'Carclo CFD' within the City Index trading platform).

You can start trading CFDs with City Index by following the simple steps:

Step 1. Apply: Apply for a CFD trading account

Step 2. Fund: Fund your CFD trading account

Step 3. Trade: Trade CFDs through the CFD trading platform

Trade CFDs following Positive Corporate Earnings

For many investors trading CFDs, particular on individual shares such as Carclo's, they will be looking closely at such reports as this morning's to help plan their trades.

Looking closely at such news is considered as fundamental analysis - they could also choose to undertake technical analysis to further plan and support their trading strategy, with the aim of limiting risk and ultimately losses.

In this morning's example, we were presented with positive earnings from Carclo.

Therefore, an investor may be more likely to speculate that Carclo's share price will rise following the news in the coming weeks and go long and buy the market.

By doing so, they could potentially net a profit in line with every point that market rises.

However, if they are wrong and the market instead falls; they could potentially net a loss in line with each point that mark falls.

It is important to remember that trading CFDs involves considerable risk as you do not own shares in the underlying financial instrument.

Read more CFD Trading Articles

You can access a range of free CFD trading articles, tips and guides through the City Index website.

You can also learn how to limit your risk, open an account and start trading CFDs.

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.

SOURCE City Index