short selling...CFD....ig markets

[megamuel]

A point is a unit decided by the spreadbetting company, and you bet 'per point'. A point might be 1 penny for a stock. So if you bet £5 per point, for every penny that stock moves up or down you make or loose £5. For forex, a certain currency pair might have 0.001 as 1 point. So if you bet £2 per point and you go long at 1.418 and the price moves to 1.420, it has moved 2 points. Because you have bet £2 per point you will then have £4 profit. You should always be sure what defines 1 point in whatever you are trading so you know what size stake you should put on...

Sam.

 

[jonboy123]

well said megamuel, i get it.

If i go long and buy £5000 worth of shares on a CFD, i pay the margin of £500. Say if i do not put a stop on, and the share price drops making the value of shares £4000. Would i need to deposit any more money? Or can i just sit and wait until the shares jump up and put me in profit? I would only need to depoit more money, if i close the trade at a loss, right? If the trade is left open, i just sit and wait for share price to increase however long it takes......correct assumption?