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Spread Betting, an Alternative to Shares Trading, is Free of Stamp Duty and Capital Gains Tax

June 23, 2011

LONDON, June 23, 2011 /PRNewswire/ –

Everyone is looking for ways to make their money work harder for them.
Spread betting is a cost-effective method of financial speculation, as it is
free of both stamp duty and Capital Gains Tax*. If you are a seasoned
trader, but are unfamiliar with financial spread betting, City Index
(http://www.cityindex.co.uk/) has a few pointers for you to bear in
mind.

Use stop losses
You can place stop losses to close your trades at set price points,
therefore never risking more of your capital than you intend to.

Never put all your eggs in one basket
If you place a large spread bet
[http://www.cityindex.co.uk/spread-betting/how-to-spread-bet.aspx ] or CFD
trade in one market, your success or failure depends solely on the movement
of that one market. Spread your trades and you will diversify your risk.

Trade within your means

Many traders use up their margin with a single opening trade. The reason
this is detrimental is that it leaves you with little surplus in your
account to allow for price fluctuations. Always hold back extra margin to
cover your position should the markets go against you, or your trade could
be closed out.

To learn more about the differences between spread betting and standard
trading, visit:

http://www.cityindex.co.uk/spread-betting/

Spread betting [http://www.cityindex.co.uk/spread-betting ] and CFD
trading [http://www.cityindex.co.uk/cfd-trading ] are leveraged products
which can result in losses greater than your initial deposit. Ensure you
fully understand the risks.

* Spread betting and CFD trading are exempt from UK stamp duty. Spread
betting is also exempt from UK Capital Gains Tax. 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, many of them discovering them through a City Index trading
platform.

As a group, we transact in excess of 1.5 million trades in over 50
countries every month. We provide access to many instruments including CFDs
[http://www.cityindex.co.uk/cfd-trading/what-is-cfd-trading.aspx ] and
financial spread betting
[http://www.cityindex.co.uk/spread-betting/what-is-spread-betting.aspx ].

We constantly look to improve our platforms and expand our range of
services. The result is that 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/ to find out more
about a City Index spread betting account [http://www.cityindex.co.uk ].

SOURCE City Index PR


Source: newswire



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