What type of trading is best for you?

The Differences Between Winning & Losing

A Winning CFD Trade

A Winning CFD Trade

You're correct and prices do increase. you close your position when the US 500 quote is 3,223.4 - 3,223.9, selling 2 CFDs for 3,223.4.

Calculate the difference between the opening and closing trades, then multiple by the number of CFDs to see your profit.

3,223.4 - 3,151.5 = 71.9 points

71.9 x 2 CFDs = $143.80

A Losing CFD Trade

A Losing CFD Trade

Unfortunately the market has moved against you and you have to sell 2 CFDs to close your position.

Now the US 500 quote is 3,102.2 - 3,102.9 and your loss is calculated like this:

3,151.5 - 3,102.2 = 49.3 points

49.3 x 2 CFDs = $98.60

The Differences Between Winning & Losing

A Winning CFD Trade

A Losing CFD Trade

You're correct and prices do increase. you close your position when the US 500 quote is 3,223.4 - 3,223.9, selling 2 CFDs for 3,223.4.

Unfortunately the market has moved against you and you have to sell 2 CFDs to close your position.

Calculate the difference between the opening and closing trades, then multiple by the number of CFDs to see your profit.

Now the US 500 quote is 3,102.2 - 3,102.9 and your loss is calculated like this:

3,223.4 - 3,151.5 = 71.9 points

3,151.5 - 3,102.2 = 49.3 points

71.9 x 2 CFDs = $143.80

49.3 x 2 CFDs = $98.60

Financial spread trading comes with a high risk of losing money rapidly due to leverage. You should consider whether you understand how spread trading works and whether you can afford to take the high risk of losing your money.