You believe that the US TECH 100 will fall so you decide to sell a CFD based on 50 underlying futures contracts for that market.
City Index quotes you a spread of 1890/1894 for the US TECH 100.
Opening trade:
| Price of US TECH 100 (US$) | 1890 |
| Equivalent number of underlying contracts | 50 |
| Value of position (US$) | 94,500.00 |
| Commission | n/a |
| Margin requirement @ 5% (US$) | 4,725.00 |
After 20 days the market has risen and you decide to close your position.
Closing trade:
| Price of US TECH 100 (US$) | 1909 |
| Equivalent number of underlying contracts | 50 |
| Value of position (US$) | 95,450.00 |
Loss on trade:
| Opening value (US$) | 94,500.00 |
| Closing value (US$) | 95,450.00 |
| Loss on position (US$) | (950.00) |
| Commission | n/a |
As you held a short position financing would also have been automatically credited to your account every night for the period that you held your position open.
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