Trade Cairn Energy Shares

Cairn Energy (CNE.L) About Cairn is an Edinburgh-based oil and gas exploration and production company listed on the London Stock Exchange since 1988. There are two arms to the business: CAIRN INDIA and CAPRICORN. Industry Exploration & Production Website www.cairn-energy.plc.uk Trading Options Financial Spread Betting Contracts For Difference Share Dealing / Stockbroker

Cairn Energy and Market Latest News Yahoo! Finance: CNE.L News UPDATE 1-Cairn gets Greenland approval for 2 exploration wells (Other) UPDATE 1-Canada to talk with Greenland on offshore drilling (Other) UPDATE 1-Cairn to ramp up production as pipeline completed (Other) Copyright (c) 2010 Yahoo! Inc. All rights reserved.

Cairn Energy: Financial Spread Betting vs CFD vs Share Dealing Table below compares Financial Spread Betting, Contract For Difference and Share Dealing trading. For simplicity we use the average brokerage fees to calculate the profit/loss if £1,000 available for investment in Cairn Energy shares (Cairn Energy share price is 1800p). Supposedly, you think that Cairn Energy shares will go up by 10% in one month. Calculations Spread Betting CFD Share Number of Shares Equivalent 1,111 1,111 56 Shares go up by 10% in 1 month, Gross Profit £2,000 £2,000 £100 Commission to open position (buy) £60 £15 £12 Commission to close position (sell) £0 £15 £12 Total Commission £60 £30 £24 Financing for one month (5% LIBOR rate) £108 £108 £0 Tax (20% band) £0 £372 £15 + £5 (Stamp Duty) Net Profit £1,832 £1,490 £56

Cairn Energy: Financial Spread Betting and Contracts For Difference (CFDs) are margined (or leveraged) products and let you go long (buy) or short (sell) with Cairn Energy shares, they are more suitable for short and medium term investments and cover a wide range of markets, including shares, indices, commodities and currencies. Share investing, on the other hand, is a conservative and old way of gaining financial independence and preserving capital. Even though some stockbrokers offer credit facilities it is very rare and not popular amongst private investors.

Risk Warning: Financial Spread Betting and Contracts For Difference (CFDs) are leveraged products and carry a high level of risk to your capital. You may lose more than your initial investment. Share price can go down as well as up and returns on investments are not guaranteed.