Guide to Trading CFDs on EURO Following EU Summit Deal
LONDON, July 2, 2012 /PRNewswire/ --
On Friday 29 June, it was not only the FTSE 100 that benefited following the EU Summit deal - the Euro also jumped against the US dollar as surprise emergency measures to fight the eurozone debt crisis were announced.
Marathon talks at the previous day's summit (28 June) resulted in an agreement between European leaders in the early hours of Friday morning to offer Spain and Italy emergency aid.
Market Reaction to EU Summit Agreement
In early morning trading on Friday, a quick but positive reaction was seen across world stocks with the FTSE 100 gaining over 1%, and 2% gains on the DAX 30 and CAC 40.
Out of all European stock indices, it was Spain and Italy that led the gains; rallying 2.3% by mid-morning.
Understandably, confidence infiltrated the currencies market - specifically the euro, which jumped over 1% higher against the US dollar before midday.
How to Trade the Euro
If you are looking to trade the euro, but cannot afford to do so through traditional trading - you can do so for only a small initial deposit - approximately between 1%-10% of the full value of the underlying instrument - with CFD trading provider City Index.
A CFD (Contract for Difference) is an agreement between two parties to exchange the difference between the opening and closing price of a contract.
You can trade currencies, such as EUR/USD, through a CFD trading account with the potential to profit from both a rising and falling market.
For example, if you expected the euro to depreciate against the US dollar - you would go short and sell.
Alternatively, if you expected it to appreciate - like it did this morning - you would go long and buy.
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 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.
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