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   CFD Equities Trading Example


As with traditional share dealing, CFD prices are quoted as a Bid (the price you can sell at) and an Offer (the price you can buy at).  With CFD trading you buy a CFD based on a certain amount of the underlying asset.

The following worked examples show how you can use CFDs to trade a number of different markets. These examples show trades that result in both profits and losses.

CFD trading example (Equities) on BMF Pro - Buying Yahoo (YHOO)


You believe that the shares of Yahoo will rise, so you decide to buy a CFD based on 3000 shares.

Boston Merchant Financial quotes you a spread of $13.47/$13.49 for Yahoo (YHOO).

  OPENNING TRADE  
  Price of YHOO is $13.49    13.49
  Number of underlying shares   3,000
  Value of total position ($)    40,470
  Transaction Fee @ $.10 per share   300
  Margin requirement @ 20% ($)   8,094


After 2 days the market has risen and you decide to close your position.

  CLOSING TRADE (2 days later)  
  Price of Yahoo is $14.01     14.01
  Number of underlying shares   3,000
  Value of total position ($)   42,030

  PROFIT (loss) ON TRADE  
  Closing value ($)   42,030
  Opening value ($)   40,470
  Gain on position ($)   1,560
  Total transaction fee ($)   (300)
  Overall profit on trade ($)   1,260

 LIST OF EQUITIES
 Equities Symbol Exchange
Margin
Transaction Fee
3M Company MMM NYSE
20%
0.16
Adobe Systems ADBE NASDAQ
20%
0.1
Altera Corporation ALTR NASDAQ
30%
0.1
Altria Group MO NYSE
20%
0.1
Amazon AMZN NASDAQ
20%
0.15
American Express AXP NYSE
40%
0.1
Amgen AMGN NASDAQ
20%
0.18
Apple Computer AAPL NASDAQ
20%
0.3
Applied materials AMAT NASDAQ
20%
0.1
AT&T T NYSE
40%
0.1
Boeing Co BA NYSE
20%
0.1
Bristol Myers Squibb BMY NYSE
20%
0.1
Caterpillar CAT NYSE
20%
0.11
Cisco Systems CSCO NASDAQ
20%
0.1
Coca Cola KO NYSE
20%
0.14
Dell Computer DELL NASDAQ
30%
0.1
Delta Airlines DAL NYSE
40%
0.1
Walt Disney DIS NYSE
20%
0.1
Ebay EBAY NASDAQ
20%
0.1
EMC Corp EMC NYSE
30%
0.1
Exxon Mobil XOM NYSE
20%
0.23
General Electric GE NYSE
30%
0.1
Goldman Sachs GS NYSE
30%
0.2
Google GOOG NASDAQ
30%
0.81
Halliburton HAL NYSE
40%
0.1
Hewlett Packard HPQ NYSE
20%
0.1
Home Depot HD NYSE
30%
0.1
IBM IBM NYSE
20%
0.23
Intel Corp INTC NASDAQ
20%
0.1
Johnson and Johnson JNJ NYSE
20%
0.17
JPMorgan Chase JPM NYSE
40%
0.1
McDonalds MCD NYSE
20%
0.17
Microsoft MSFT NASDAQ
20%
0.1
Morgan Stanley MS  NYSE
60%
0.1
National Semiconductor NSM NYSE
20%
0.1
Newmont Mining NEM NYSE
30%
0.1
Oracle Corp ORCL NASDAQ
20%
0.1
Pfizer PFE NYSE
20%
0.1
Qualcomm QCOM NASDAQ
30%
0.1
Research in Motion RIMM NASDAQ
20%
0.19
Symantic SYMC NASDAQ
40%
0.1
Target TGT NYSE
20%
0.1
Texas Instruments TXN NYSE
20%
0.1
Time Warner TWX NYSE
20%
0.1
United Technologies UTX NYSE
20%
0.14
Verizon Communications VZ NYSE
20%
0.1
Yahoo YHOO NASDAQ
20%
0.1
Nippon Telegraph and Telephone NTT NYSE
15%
0.1
Nissan Motor NSANY NASDAQ
15%
0.1
NTT DoComo DCM NYSE
15%
0.1
Sony SNE NYSE
15%
0.1
Toyota Motor TM NYSE
15%
0.2
Baidu BIDU NASDAQ
15%
0.1
China Unicom CHU NYSE
25%
0.1
Shanda Interactive Entertainment SNDA NASDAQ
10%
0.1
Suntech Power STP NYSE
25%
0.1
Cemex S.A.B. de C.V. CX NYSE
10%
0.1
Petroleo Brasileiro PBR NYSE
20%
0.1
Alfa-A ALFAA Mexican Stock Exchange
20%
0.01
America Movil AMXL Mexican Stock Exchange
20%
0.01
Cemex CPO CEMEXCPO Mexican Stock Exchange
20%
0.01
Consorcio-ARA ARA Mexican Stock Exchange
50%
0.01
Empresas ICA Mexican Stock Exchange
50%
0.01
Gmexico-B GMEXICOB Mexican Stock Exchange
20%
0.01
Grupo Fin Banorte GFNORTEO Mexican Stock Exchange
60%
0.01
Grupo Televisa TLEVISACPO Mexican Stock Exchange
20%
0.01
Mexichem MEXCHEM Mexican Stock Exchange
20%
0.01
Urbi Desarroll URBI Mexican Stock Exchange
60%
0.01
Wal-Mart WALMEXV Mexican Stock Exchange
20%
0.01
Telmex TELMEXL Mexican Stock Exchange
20%
0.01