Boston Merchant Financial - Trade CFDs on Equities, Futures and Foreign Exchange

CFD Trading Example (ETF)

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 (ETF) on BMF Pro - Buying SPDR (SPY)

You believe that the shares of SPY will rise, so you decide to buy a CFD based on 2000 shares. Boston Merchant Financial quotes you a spread of $84.68/$84.70 for SPDR (SPY).

OPENNING TRADE
Price of SPY is $84.70	84.70
Number of underlying shares	2,000
Value of total position (US$)	169,400
Transaction Fee @ $.24 per share	480
Margin requirement @ 20% ($)	33,880

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

CLOSING TRADE (2 days later)
Price of SPY is $86.75	86.75
Number of underlying shares	2,000
Value of total position ($)	173,500

PROFIT (loss) ON TRADE
Closing value ($)	173,500
Opening value ($)	169,400
Gain on position ($)	4,100
Total transaction Fee $	(480)
Overall profit on trade ($)	3,620

LIST OF ETFs

ETF'S	Symbol	Exchange	Margin	Transaction Fee
Diamonds	DIA	AMEX	20%	0.23
PowerShares Aerospace & Defense	PPA	AMEX	20%	0.1
PowerShares DB Agriculture	DBA	AMEX	10%	0.1
PowerShares DB Commodity Idx Trking	DBC	AMEX	20%	0.1
PowerShares Dynamic Large Cap growth	PWB	AMEX	20%	0.1
PowerShares Dynamic Pharmaceuticals	PJP	AMEX	20%	0.1
PowerShares Dynamic Software Portfolio	PSJ	AMEX	20%	0.1
PowerShares Dynamic Semiconductor	PSI	AMEX	20%	0.1
PowerShares QQQ	QQQQ	AMEX	10%	0.1
PowerShares Water Resources	PHO	AMEX	20%	0.1
PowerShares Wilder Clean Energy	PBW	AMEX	30%	0.1
PowerShares Dynamic Utilities Portfolio	PUI	AMEX	20%	0.1
SPDR	SPY	AMEX	20%	0.24
SPDR Consumer Staples	XLP	AMEX	20%	0.1
SPDR DJ Wilshire Intl Real Estate	RWX	AMEX	20%	0.1
SPDR Energy	XLE	AMEX	20%	0.13
SPDR Financial	XLF	AMEX	20%	0.1
SPDR Industrial	XLI	AMEX	20%	0.1
SPDR S&P China	GXC	AMEX	30%	0.13
SPDR S&P Emerging Middle East&Africa	GAF	AMEX	30%	0.12
SPDR Technology	XLK	AMEX	20%	0.1
SPDR S&P Metals&Mining	XME	AMEX	50%	0.1
SPDR HealthCare	XLV	AMEX	20%	0.1
SPDR Gold Shares	GLD	AMEX	20%	0.27
SPDR S&P Homebuilders	XHB	AMEX	60%	0.1
SPDR S&P Oil & Gas Exploration	XOP	AMEX	20%	0.1
SPDR Materials Select Sector	XLB	AMEX	20%	0.1
SPDR Consumer Discretionary	XLY	AMEX	20%	0.1
SPDR Utilities Select Sector	XLU	AMEX	20%	0.1
BLDRS Emerging Markets 50 ADR Index	ADRE	AMEX	40%	0.1
HLDRS Biotech	BBH	AMEX	20%	0.1
HLDRS Semiconductor	SMH	AMEX	20%	0.1
HLDRS Oil Service	OIH	AMEX	20%	0.23
DJ Wilshire REIT ETF	RWR	AMEX	20%	0.1
KBE Bank Index	KBE	AMEX	30%	0.1
KBW Regional Banking	KRE	AMEX	70%	0.1
Rydex S&P equal Weight	RSP	AMEX	20%	0.1
United States Oil	USO	AMEX	30%	0.12
United States Natural Gas	UNG	AMEX	20%	0.1
Ultra QQQ ProShares	QLD	AMEX	30%	0.1
Ultra S&P500 ProShares	SSO	AMEX	30%	0.1
UltraShort Dow30 ProShares	DXD	AMEX	50%	0.19
UltraShort Financials ProShares	SKF	AMEX	50%	0.49
UltraShort FTSE/Xinhua China 25 ProShares	FXP	AMEX	50%	0.16
UltraShort Russell 2000 ProShares	TWM	AMEX	30%	0.22
UltraShort S&P500 ProShares	SDS	AMEX	30%	0.29
UltraShort Real Estate ProShares	SRS	AMEX	20%	0.18
UltraShort Oil&Gas ProShares	DIG	AMEX	20%	0.1
UltraShort 20yr Treasury ProShares	TBT	AMEX	20%	0.13
UltraShort MSCI Emerging Mkts ProShares	EEV	AMEX	20%	0.13
UltraShort DJ-AIG Crude Oil ProShares	SCO	AMEX	20%	0.1
UltraShort Basic Materials ProShares	SMN	AMEX	20%	0.1
Ultra Basic Materials ProShares	UYM	AMEX	20%	0.1
Vanguard Europe Pacific ETF	VEA	AMEX	30%	0.1
Vanguard REIT ETF	VNQ	AMEX	30%	0.1
Vanguard Mid Cap ETF	VO	AMEX	20%	0.12
Vanguard Value ETF	VTV	AMEX	20%	0.11
Vanguard FTSE All World ex-US ETF	VEU	AMEX	20%	0.1
Vanguard Emerging Markets ETF	VWO	AMEX	30%	0.13
Vanguard European ETF	VGK	AMEX	60%	0.1
iShares S&P100 Index	OEF	AMEX	20%	0.12
iShares Nasdaq Biotechnology	IBB	AMEX	20%	0.19
iShares Cohen & Steers Realty Majors	ICF	AMEX	40%	0.1
iShares Dow Jones Select Dividend Index	DVY	AMEX	40%	0.12
iShares Dow Jones US Basic Materials	IYM	AMEX	40%	0.12
iShares Dow Jones US Energy	IYE	AMEX	40%	0.1
iShares Dow Jones US Financial Sector	IYF	AMEX	40%	0.12
iShares Dow Jones US Real Estate	IYR	AMEX	50%	0.1
iShares Lehman TIPS Bond	TIP	AMEX	20%	0.29
iShares MSCI EAFE Index	EFA	AMEX	40%	0.12
iShares MSCI Germany Index	EWG	AMEX	30%	0.1
iShares MSCI EMU Index	EZU	AMEX	40%	0.1
iShares MSCI Malaysai Index	EWM	AMEX	40%	0.1
iShares MSCI Mexico Index	EWW	AMEX	40%	0.1
iShares Russell 2000 Growth Index	IWO	AMEX	20%	0.13
iShares MSCI United Kingdom Index	EWU	AMEX	20%	0.1
iShares Russell 2000 Value Index	IWN	AMEX	20%	0.13
iShares Silver trust	SLV	AMEX	20%	0.1
iShares Russell Midcap growth Index	IWP	AMEX	20%	0.1
iShares Russell Midcap Value Index	IWS	AMEX	40%	0.1
iShares S&P500 Growth Index	IVW	AMEX	40%	0.13
iShares S&P500 Value Index	IVE	AMEX	40%	0.13
iShares S&P500 Index	IVV	AMEX	20%	0.25
iShares S&P MidCap 400 Index	IJH	AMEX	40%	0.14
iShares S&P SmallCap 600 Index	IJR	AMEX	40%	0.12
iShares MSCI Canada Index	EWC	AMEX	20%	0.1
iShares MSCI Japan Index	EWJ	AMEX	20%	0.1
iShares MSCI Brazil Index	EWZ	AMEX	20%	0.11
iShares Barclays 20+yr Treasury Bond	TLT	AMEX	20%	0.31
iShares FTSE/Xinhua China 25 Index	FXI	AMEX	20%	0.1
iShares MSCI Tawain Index	EWT	AMEX	20%	0.1
iShares MSCI South Korea Index	EWY	AMEX	20%	0.1
iShares MSCI Hong Kong Index	EWH	AMEX	20%	0.1
iShares MSCI Australia Index	EWA	AMEX	20%	0.1
iShares MSCI Singapore Index	EWS	AMEX	20%	0.1
iShares s&P Latin America 40 Index	ILF	AMEX	20%	0.1
Market Vectors Coal ETF	KOL	AMEX	40%	0.1
Market Vectors Russia	RSX	AMEX	40%	0.1

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