Trade Examples: All examples below are for illustration purpose only and do not represent any advice or trading strategy


Trade Example 1 Long position with profit (Day trading)

Index CFD: US30.IXC

Bid/Ask Price: 18,400/18,402 (Spread = 2 index points)

 

Trader believes US Dow Jones will appreciate. He/she buys 10 US30.IXC @ 18,402 (Entry price)

Trade Value = 10 * 18,402 = USD 184,020

Initial Margin @ 5% = USD 9,201

Commission = 0

Later in the day Bid/Ask Price: 18,409/18,411 (Spread = 2 index points)

Trader decides to close out position to take profit. He/she sells 10 US30.IXC @ 18,409 (Exit price)

Trade Value = 10 * 18,409 = USD 180,409

Commission = 0

Gross Profit = Quantity * (Exit price Entry price) = 10 * (18,409 18,402) = USD 70

Net Profit = Gross profit Commission = USD 70 - 0 = USD 70


Trade Example 2 Long position with loss (Day trading)

Index CFD: HK50.IXC

Bid/Ask Price: 22,900/22,915 (Spread = 15 index points)

 

Trader buys 10 HK50.IXC @ 22,915 (Entry price)

Trade Value = 10 * 22,915 = HKD 229,150

Initial Margin @ 5% = HKD 11,457.5

Commission = 0

Later in the day Bid/Ask Price: 22,885/22,900 (Spread = 15 index points)

Trader decides to close out position to take loss. He/she sells 10 HK50.IXC @ 22,885 (Exit price)

Trade Value = 10 * 22,885 = HKD 228,850

Commission = 0

Gross Loss = Quantity * (Exit price Entry price) = 10 * (22,885 22,915) = HKD -300

Net Loss = Gross Loss Commission = HKD -300 - 0 = HKD -300


Trade Example 3 Short position with profit (Day trading)

Index CFD: AX200.IXC

Bid/Ask Price: 5,515/5,517 (Spread = 2 index points)

 

Trader sells 25 AX200.IXC @ 5,515 (Entry price)

Trade Value = 25 * 5,515 = AUD 137,875

Initial Margin @ 5% = AUD 6,893.75

Commission = 0

Later in the day Bid/Ask Price: 5,506/5,508(Spread = 2 index points)

Trader decides to close out position to take loss. He/she buys 25 AX200.IXC @ 5,508 (Exit price)

Trade Value = 25 * 5,508 = AUD 137,700

Commission = 0

Gross profit / Loss = Quantity * (Exit price - Entry price) = -25 * (5508 - 5,515) = AUD 175

Net Profit = Gross Profit Commission = AUD 175 0 = AUD 175