|
You think the share price of ABC Corp
is going up, so you buy a CFD on 5,000 shares. The next day the
share price goes down, so when the position is marked to market,
more margin is required, but luckily, you already have enough
in your account. On the second day, the share price rises, and
you close the position by selling the CFD. The difference between
the bought price and the sold price is credited to your account.
| Long Equity CFD example |
€
|
| Account |
€ |
|
| Monday (Trade date) |
|
| |
|
| Share Price 16.48 - 16.50 |
|
| Opening Ledger Balance |
23,000 |
| Number of shares |
5,000
|
| Commission |
(206) |
| ABC Corp Offer price BUY @ |
16.50
|
| Position Financing |
(8) |
| Underlying value |
82,500
|
| Closing Ledger Balance |
22,786 |
| |
|
| Mark to market |
0 |
| |
|
| Margin requirement |
(16,500) |
| |
|
| Excess/(deficit) funds |
6,286 |
| |
|
| Ledger interest accrued |
0.38 |
|
| Tuesday (T+1) |
|
| |
|
| Closing share price 15.00 |
|
| Opening ledger balance |
22,786 |
| ABC Corp closing price |
15.00
|
| Commission |
0 |
| Underlying value |
75,000
|
| Position financing |
(7) |
| |
|
| Closing ledger balance |
22,779 |
| |
|
| Mark to market |
(7,500) |
| |
|
| Margin requirement |
(15,000) |
| |
|
| Excess/(deficit) funds |
279 |
| |
|
| Ledger interest accrued |
0.38 |
|
| Wednesday (T+2) |
|
| Opening ledger balance |
22,779 |
| Share price 18.00-18.02 |
|
| Commission |
(225) |
| ABC Corp bid price SELL |
18.00
|
| Settlement |
7,500 |
| Underlying value |
90,000
|
| Ledger balance |
30,054 |
| |
|
| Total ledger interest accrued |
0.76 |
|
| IFX credit rate |
+1.75%
|
| Profit/(Loss) |
7,055 |
| IFX deposit rate |
-1.00%
|
| Return on balance |
30.7% |
| Central rate (€) |
1.60%
|
| Share price movement |
9.1% |
| Finance interest rate |
3.35%
|
| |
|
| Deposit interest rate |
0.60%
|
| Margin rate |
20% |
| Days in year |
360
|
| Commission rate |
0.25% |
|
|
