CFD trading example (equity) - Buying ABC Plc
You believe that company ABC Plc’s shares will rise, so you decide to buy a CFD based on 2000 shares.
City Index quotes you a spread of 860/861 for ABC Plc.
Opening trade:
| Price of ABC Plc (pence) | 861 |
| Equivalent number of underlying shares | 2000 |
| Value of total position (£) | 17,220.00 |
| Commission @ 0.2% (£) | 34.44 |
| Margin requirement @ 10% (£) | 1,722.00 |
Closing trade (3 days later):
| Price of ABC Plc (pence) | 892 |
| Equivalent number of underlying shares | 2000 |
| Value of total position (£) | 17,840.00 |
| Commission @ 0.2% (£) | 35.68 |
Profit (loss) on trade:
| Closing value (£) | 17,840.00 |
| Opening value (£) | 17,220.00 |
| Profit (£) | 620.00 |
| Commission (£) | (70.12) |
| Overall profit on trade (£) | 549.88 |
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