Question about stock CFD margin trading

korvix

Newbie
1 0
Hi, I have a question about trading CFD stocks with margin

Let's say the broker offers a 10% margin (as I understand it is similar to 10:1 leverage) and I have a $10k balance. Can I open a $100k position, and stock moved 1%, this means I have potentially earned $1,000 with just $10k balance on this CFD stock ?
 

options-george

Well-known member
483 92
Hi, I have a question about trading CFD stocks with margin

Let's say the broker offers a 10% margin (as I understand it is similar to 10:1 leverage) and I have a $10k balance. Can I open a $100k position, and stock moved 1%, this means I have potentially earned $1,000 with just $10k balance on this CFD stock ?
Yes that is correct. In the same way, your account would be down 10% if the stock price moved 1% against you.
 

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