AUS200 index CFD trading profit calculation

This is a discussion on AUS200 index CFD trading profit calculation within the Spread Betting & CFDs forums, part of the Commercial category; Hi. I purchased an AUS200 contract at 4116 on January 6, 2012. The AUD/USD was trading at around 1.0250 at ...

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Old Jan 21, 2012, 6:57am   #1
 
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AUS200 index CFD trading profit calculation

Hi. I purchased an AUS200 contract at 4116 on January 6, 2012. The AUD/USD was trading at around 1.0250 at the time. Now the AUS200 contract is trading at 4237. The AUD/USD is trading at 1.0482. I have a swap -13.86 for the contract. Metatrader is showing profit of only 124.03. Shouldn't the profit be higher due the AUD/USD gain?

Could you someone clear this up for me? It looks like Metatrader is basically only showing the difference between the contract buy price at 4116 and the current price of 4237 for the AUS200. I think it would really suck if I found out that I had to BORROW AUD in order to buy the AUS200. Anyone have experience with this? In order to buy a CFD index contract, does the brokerage borrow or buy the foreign currency for you?
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Old Jan 21, 2012, 4:11pm   #2
 
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Re: AUS200 index CFD trading profit calculation

Charvo started this thread I think I misunderstood how CFD index trading works. It is basically a bet on if the index rises or falls regardless of the currency in which it is denominated. I guess that is the reason why no one would want to be long the AUS200.
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Old Jan 22, 2012, 11:52am   #3
 
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Re: AUS200 index CFD trading profit calculation

Quote:
Originally Posted by Charvo View Post
Hi. I purchased an AUS200 contract at 4116 on January 6, 2012. The AUD/USD was trading at around 1.0250 at the time. Now the AUS200 contract is trading at 4237. The AUD/USD is trading at 1.0482. I have a swap -13.86 for the contract. Metatrader is showing profit of only 124.03. Shouldn't the profit be higher due the AUD/USD gain?

Could you someone clear this up for me? It looks like Metatrader is basically only showing the difference between the contract buy price at 4116 and the current price of 4237 for the AUS200. I think it would really suck if I found out that I had to BORROW AUD in order to buy the AUS200. Anyone have experience with this? In order to buy a CFD index contract, does the brokerage borrow or buy the foreign currency for you?
you are most likely having to buy in the currency of the index as its valued in aud's ......so youre converting to aud and back again......the dx diff only works, for or against you, once youve made the round trip or closed the contract.....when i'm on the HSI i'm viewing the active trade in HK$'s and then in AUD's once the contract is closed......

as for not wanting to be long the xjo.......that depends on your time frame
where the xjo closed on friday i had closed half my longs at 4235 from 4107.....looking for a pop very soon.....
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Old Jan 22, 2012, 2:28pm   #4
 
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Re: AUS200 index CFD trading profit calculation

Charvo started this thread
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Originally Posted by Joules MM1 View Post
you are most likely having to buy in the currency of the index as its valued in aud's ......so youre converting to aud and back again......the dx diff only works, for or against you, once youve made the round trip or closed the contract.....when i'm on the HSI i'm viewing the active trade in HK$'s and then in AUD's once the contract is closed......

as for not wanting to be long the xjo.......that depends on your time frame
where the xjo closed on friday i had closed half my longs at 4235 from 4107.....looking for a pop very soon.....
Thanks for the reply. A near term correction could happen, but I am more of an intermediate swing trader. I am looking at the CAC contract on any corrections.
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Old Jan 22, 2012, 2:40pm   #5
 
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Re: AUS200 index CFD trading profit calculation

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Originally Posted by Charvo View Post
Thanks for the reply. A near term correction could happen, but I am more of an intermediate swing trader. I am looking at the CAC contract on any corrections.
i'm usually trading the xjo on a sub 1 min basis but it's nice to have the daily direction to sit while the sydney trippers play havoc with the post cash price......

here's my todays daily noodles
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