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Examples of a CFD stocks trade

Apple stocks is trading at 225.10 (sell price) / 225.20 (buy price)

You are interested in buying 100 units of CFD Apple stocks as you think the price will move higher.

Your pip value in this example will be 0.01 x 100 (trade size) = $ 1

Example 1: Winning Trade

You were correct with your prediction and the price of Apple stocks goes up to 232.50/232.60 and you decide to close your winning trade by selling at 232.50 (current sell price)

The price of EUR/USD went up 730 pips (232.50 – 225.20 ) in your favor.

Your profit is ([100 x 232.50] – [100 x 225.20])= $730

Alternatively, you can calculate your profit by multiplying the pip value with the number of pips it moved, i.e. your profit is 730 pips x $1 = $730

Example 2: Losing Trade

Your prediction was wrong and the price of Apple dropped over the next hours to 217.90/218.00, you assume that the drop of the price will continue and you decide to close the trade at 218.30 (current sell price) to limit your losses.

The price of Apple dropped down 730 pips (225.20 – 217.90) against you.

Your loss is ([100 x 225.20] – [100 x 217.90])= - 730 $

Alternatively, you can calculate your loss by multiplying the pip value with the number of pips it moved, i.e. your loss is [730 pips x (-$1)] = - $730

Please note, profit and loss amounts given in the examples don’t include FX calculation charges, commissions (depends on account type) and overnight swap charges (may be credited or debited to your account depending on trade).

For further detailed calculations, please consult your personal account manager.

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