|
You think the share price of ABC Corp
is going down, so you sell a CFD on 6,500 shares. The next day
the share price goes down, so you close the position straight
away to realise the profit. The difference between the sold price
and the bought price is credited to your account.
| Short Equity CFD example |
€
|
| Account |
€ |
|
| Monday (Trade date) |
|
| |
|
| Share Price 16.48 - 16.50 |
|
| Opening Ledger Balance |
23,000 |
| Number of shares |
6,500
|
| Commission |
(268) |
| ABC Corp Bid price SELL @ |
16.48
|
| Position Financing |
1.79 |
| Underlying value |
107,120
|
| Closing Ledger Balance |
22,734 |
| |
|
| Mark to market |
0 |
| |
|
| Margin requirement |
(21,424) |
| |
|
| Excess/(deficit) funds |
1,310 |
| |
|
| Ledger interest accrued |
0.38 |
|
| Tuesday (T+1) |
|
| Opening ledger balance |
22,734 |
| Share price 15.00-15.01 |
|
| Commission |
(243.91) |
| ABC Corp offer price BUY |
15.01
|
| Settlement |
9,555 |
| Underlying value |
97,565
|
| Ledger balance |
32,045 |
| |
|
| Total ledger interest accrued |
0.38 |
|
| IFX credit rate |
+1.75%
|
| Profit/(Loss) |
9,045 |
| IFX deposit rate |
-1.00%
|
| Return on balance |
39.3% |
| Central rate (€) |
1.60%
|
| Share price movement |
-8.9% |
| Finance interest rate |
3.35%
|
| |
|
| Deposit interest rate |
0.60%
|
| Margin rate |
20% |
| Days in year |
360
|
| Commission rate |
0.25% |
|
|
