📘 CFD Trading Examples
Example 1: Buying EUR/USD
Market Price
EUR/USD = 1.18490 / 1.18508
(Buy at Ask = 1.18508, Sell at Bid = 1.18490)
Trade Action
Buy 100,000 EUR/USD (1 standard lot)
Margin rate = 3.33% (≈ 30:1 leverage)
Initial Margin Calculation
Notional value = 100,000 × 1.18508 = 118,508 USD
Initial margin = 118,508 × 3.33% = 3,948 USD ≈ 3,333 EUR
Profit Scenario
The price rises to 1.18824 / 1.18840. You close at 1.18824 (Bid).
Price move = 1.18824 – 1.18508 = 0.00316 (31.6 pips)
Profit = 316 USD
Loss Scenario
The price falls to 1.18391 / 1.18370. You close at 1.18391 (Bid).
Price move = 1.18391 – 1.18508 = -0.00117 (-11.7 pips)
Loss = -117 USD
Example 2: Selling EUR/GBP
Market Price
EUR/GBP = 0.86157 / 0.86184
(Sell at Bid = 0.86157, Buy at Ask = 0.86184)
Trade Action
Sell 100,000 EUR
Margin rate = 33% (≈ 3:1 leverage)
Initial Margin Calculation
Notional value = 100,000 × 0.86157 = 86,157 GBP
Initial margin = 86,157 × 33% = 28,432 GBP
Profit Scenario
The price falls to 0.86030 / 0.86057. You close at 0.86057 (Ask).
Price move = 0.86157 – 0.86057 = 0.00100 (10 pips)
Profit = 100 EUR
Loss Scenario
The price rises to 0.86230 / 0.86257. You close at 0.86257 (Ask).
Price move = 0.86157 – 0.86257 = -0.00100 (-10 pips)
Loss = -100 EUR
Example 3: Buying AAPL (CFD on Shares)
Market Price
AAPL = 122.52 / 122.67
(Buy at Ask = 122.67, Sell at Bid = 122.52)
Trade Action
Buy 100 shares of AAPL (1 CFD = 100 shares)
Margin rate = 5% (20:1 leverage)
Initial Margin Calculation
Notional value = 100 × 122.67 = 12,267 USD
Initial margin = 12,267 × 5% = 613 USD
Profit Scenario
The price rises to 129.52 (Bid). You close at 129.52.
Price move = 129.52 – 122.67 = 6.85 USD/share
Gross profit = 6.85 × 100 = 685 USD
Commission = 20 USD
Net profit = 665 USD
Loss Scenario
The price falls to 117.52 (Bid). You close at 117.52.
Price move = 117.52 – 122.67 = -5.15 USD/share
Gross loss = -5.15 × 100 = -515 USD
Commission = 20 USD
Net loss = -535 USD
Example 4: Selling AAPL (CFD on Shares)
Market Price
AAPL = 122.52 / 122.67
(Sell at Bid = 122.52, Buy at Ask = 122.67)
Trade Action
Sell 100 shares of AAPL
Margin rate = 5% (20:1 leverage)
Initial Margin Calculation
Notional value = 100 × 122.52 = 12,252 USD
Initial margin = 12,252 × 5% = 613 USD
Profit Scenario
The price falls to 114.52 / 114.67. You close at 114.67 (Ask).
Price move = 122.52 – 114.67 = 7.85 USD/share
Gross profit = 7.85 × 100 = 785 USD
Commission = 20 USD
Net profit = 765 USD
Loss Scenario
The price rises to 130.52 / 130.67. You close at 130.67 (Ask).
Price move = 122.52 – 130.67 = -8.15 USD/share
Gross loss = -8.15 × 100 = -815 USD
Commission = 20 USD
Net loss = -835 USD