US30 (Dow Jones) is trading at 25976 (sell price) / 25980 (buy price)
You want to buy 5 contracts of US30 Index CFD because you predict that the price will go up.
Your pip value in this example will be 1 x 5 (trade size) = $ 5
Example 1: Winning Trade
You were correct with your prediction and the price of US30 Index goes up to 26782/26786 and you decide to close your winning trade by selling at 26782 (current sell price)
The price of the US30 Index went up 402 pips (26382 – 25980 ) in your favor.
Your profit is ([26382– 25980] x 5 $ pip value)= $ 2010
Example 2: Losing Trade
Your prediction was wrong and price of US30 Index dropped down over the next hours to 25578 / 25582, you assume that the drop of the price will continue and you decide to close the trade at 25578 (current sell price) to limit your losses.
The price of the US30 Index dropped 402 pips (25980 – 25578) against you.
Your loss is ([25980-25578] – x -5 $ pip value)= - $ 2010
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.