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

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