CMC confusing me...

[paulbennett1084]

I have set up a demo account the amount / stake is confusing me

i have used the live help, and they have confused me ever more. they say that each pt = £1
how ever when i make a trade i put £/pt as 10. When the points went up or down. my profit increased of decreased by a £1 so i that made me think £/pt - 10 = £1

as i done the same with £/pt 100 and that = profit going up n down by £10

can someone shed some light on this if they understand me...I really like the CMC platform so i would like to learn how to use it

 

[ns1000]

I suspect it's your definition of one point. Whatb product are you trading, and what is the quote?

 

[paulbennett1084]

hmm right ok...im spread betting with Gold which at the time of typing the sell price was 1,412.58 and the buy price was 1,412.98 (i done a print screen) the spread was 0.40

My stake was 10 ... this was giving me a p/l of -23.00 giving me a loss of £23.00

so my question really is...that 10 what does it equal. as i was doing the same with a stake of 100 and using the example above my loss was £230

i was chatting with live help, i wouldnt of been surprised if he was getting pissed with me...but he gave me this link: click me which didnt really make it any more clearer

confused.com

 

[ns1000]

Your £10 stake should mean that if it moves from 1412.58 to 1413.58 and you bought, you would make £10. Does that tally with your opening and closing levels?

 

[paulbennett1084]

Your £10 stake should mean that if it moves from 1412.58 to 1413.58 and you bought, you would make £10. Does that tally with your opening and closing levels?

i think i have just had a eureka moment... so "points" are the numbers before the . and "pip" are the numbers after the . ?

then if so that makes more sense.

so say my stake was £10 pp and it went from 1412.58 to 1422.58 i would of made £100 ?
or if it rose from 1412.58 to 1422.68 i would of made £100.10

i have just read this: http://daytrading.about.com/od/ptor/g/PointsTicksPips.htm
it makes clearer sense to me now. I have been demoing a forex account too...im really / really bad at maths. But trading and the markets freakishly interest me a lot. Dangerous combo id say

 

[PC at CMC Markets]

Hi Everybody
Best way to understand the prices we offer is to look at the bigger figure of the spread.
That is what you bet on. So at the moment gold is being quoted by us as follows
to buy 1382.30 but the 2 is the bigger figure displayed so when you bet you say buy £10 at 1382.30 and to make £10 on the bet the price has to go to 1383.30. always look for the bigger figure when you are betting.
the .30 is giving you fractions of a pip.
hope that helps. remember you are always betting on the bigger figure in the spread.
regards Peter, Executive Chairman CMC Markets.

 

[neil]

Excellent post Pc

 

[anley]

Paul

See, learning trading is far more than knowing where to buy and sell, it's also about how the software works, how the markets work, how the orders work etc etc.

Keep doing what you're doing, keep getting confused with that play money as you're doing 100% the right thing. Practice makes perfect

 

[PC at CMC Markets]

pleasure and good luck with trading.
Do think though that this blog should have been on my new thread CMC Markets owners answers your questions. You can find it in the forums.

cheers peter

Excellent post Pc

 

[Black Swan]

pleasure and good luck with trading.
Do think though that this blog should have been on my new thread CMC Markets owners answers your questions. You can find it in the forums.

cheers peter

The lad has probably just missed the main thread Peter, why not drop the mods a line through your pm facility, (Barjon, Lightning McQ or Tim) and ask them to merge it? Might be worth them merging the other CMC 'platform' thread at the same time. Better than having 2-3 threads all over the shop.

 

[swedendenmark]

Hello,

I just started using cmcmarkets. Yesterday I took a position on 10k $ on EURCHF long at 1.2165, but now I see that I have been handed over the loss of around 100 $ and my total equity has decreased by 100 $ too. The market price shown now is 1.2063(see below), where as the closing price is 1.2163.

Instrument Quantity Market Reval
EUR/CHF 10,000.00/-12,190.82 1.20663 0.93932

I mean, I did not close the position. I am new to CMC Markets and I am more accustomed to Oanda. I understand that they do explicit rollover, but now I am totally confused. Why is price 1.2063 and why this loss?

Can any one of you please tell me what exactly has happened?
Thanks a lot.

 

[Shakone]

Two things come to mind. First, CMC may put in an automatic stop for every position entered, and 100 pips seems like something they might do. The second possibility is that you had too few funds in the account, and your position was closed because of lack of margin.

 

[swedendenmark]

Two things come to mind. First, CMC may put in an automatic stop for every position entered, and 100 pips seems like something they might do. The second possibility is that you had too few funds in the account, and your position was closed because of lack of margin.

Hello,
Thanks for your reply. Well, I don't think that my position is closed, since order history does not show it and current positions still shows the position, albeit with 100 dollar loss. I had enough funds to absorb a down movement till 1.20, so that possibility can be discounted. EURCHF market never went below 1.2133 and the so called "closed" happened at 1.2033. That's totally puzzling to me.

One possibility I could think of that it's weekend, so they closed position, only to open it on Sunday night, but then why have they decreased my total equity?

I find it rather bizzare.

 

[Mata Nui]

Hello,
Thanks for your reply. Well, I don't think that my position is closed, since order history does not show it and current positions still shows the position, albeit with 100 dollar loss. I had enough funds to absorb a down movement till 1.20, so that possibility can be discounted. EURCHF market never went below 1.2133 and the so called "closed" happened at 1.2033. That's totally puzzling to me.

One possibility I could think of that it's weekend, so they closed position, only to open it on Sunday night, but then why have they decreased my total equi
I find it rather bizzare.

Its probably a swap charge. Other spreadbetters do this aswell. I use Smartlive and there is a seperate column on the MT4 platform that shows the swap. It is very probably that the CMC platform has a different way of handling it. If you have a currency position open overnight you will get a swap charge.