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Share CFDs example

Opening the position

If you decide to open a position on Barclays. The stock is quoted at 126.85/126.95 in the market, and you buy 10,000 shares as a CFD at 126.95p, the offer price.

As a Trader Account holder instead of putting up the full value of the shares (126.95p x 10,000), you need only supply a deposit of 5% or £634.75.*

Closing the position

It is near the end of the day, and Barclays has risen to 129.25/129.35 in the market and you decide to take your profit. You sell 10,000 shares at 129.25p, the bid price.

Your profit on the trade is calculated as follows:
Profit on the trade
Closing level 129.25p
Opening level 126.95p
Difference 2.30p

Profit on trade: 2.30p x 10,000 = £230

To calculate the overall result on the transaction you would also have to take into account the commission you have paid and the interest and dividend adjustments. To see a detailed example that includes these charges and adjustments, please click here.

Of course, had the market moved in the opposite direction, you would have made a loss that may have exceeded your initial deposit.
 

Please note: The above is simply an example to show how profit and loss is calculated with CFDs