When trading CFD's how do you work out profit/loss?

roy12

Junior member
17 0
When you are trading CFD's how do you work out the profit/loss? For example, if you go long on the FTSE100 @ 5879.00 and get out @ 5880.00, how do you work out the point price?

I guess it depends on the amount of CFD's you buy? Is there a easy formula to use?

I know some software do it automatically and show you but I want to be able to do it manually too.

I am a new trader learning the markets, any help would be great.
 

Joules MM1

Established member
648 142
When you are trading CFD's how do you work out the profit/loss? For example, if you go long on the FTSE100 @ 5879.00 and get out @ 5880.00, how do you work out the point price?

I guess it depends on the amount of CFD's you buy? Is there a easy formula to use?

I know some software do it automatically and show you but I want to be able to do it manually too.

I am a new trader learning the markets, any help would be great.

your provider should already have a site that shows you what the value of each instrument is for each pip/point moved for the amount of leverage youre using.....you should already know this before making a trade ....regardless of the pos sized.......
 

Smooth

Junior member
15 0
In your case it's (5880-5879)x Your Stake which is probably in GBP. So if you trade was for £5, your profit would be (5880-5879)x5.

If your stake was in points, you need to check with your broker as Joules says above. With my broker (IGM) one point is one GBP.
 

roy12

Junior member
17 0
In your case it's (5880-5879)x Your Stake which is probably in GBP. So if you trade was for £5, your profit would be (5880-5879)x5.

If your stake was in points, you need to check with your broker as Joules says above. With my broker (IGM) one point is one GBP.

Ok thanks I understand this now. The point is worth £1 with the broker I am using. So therefore,

(5800.0 - 5879.0) x amount of CFD bought.

(5800.0 - 5879.0) x 2 = profit/loss
 
 
AdBlock Detected

We get it, advertisements are annoying!

But it's thanks to our sponsors that access to Trade2Win remains free for all. By viewing our ads you help us pay our bills, so please support the site and disable your AdBlocker.

I've Disabled AdBlock