CFD Quotes
How to read a CFD quote?
When trading equity index CFDs, one lot represents your trade size. Minimum trade sizes vary, and this will affect the profit/loss amount represented by a single tick. For minimum trade sizes and tick values, please refer to the product information on the trading platform.
Index CFD trading example
The quote for the UK100 Index is 5001/5007
This means you can sell at 5001 or buy at 5007. The spread is the difference between these two prices and represents the cost of trading.
You decide to sell 10 lots at 5001
This means that for every point that our quote on the UK100 index falls, you will make £10, but for every point it rises you will lose £10.
When the UK100 Index quote falls to 4895/4951 you close your position by buying 10 lots at 4951.
This trade resulted in a gain of (5001-4951) x £10 = £500
If, conversely, the price had risen, your trade would have resulted in a loss.
There are no overnight financing costs associated with our Index CFDs as they are based on futures contracts.
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Material taken with permission from Forex.com. Adaptation - International Trading School d.o.o. Beograd |