Trade at the market price and pay just an initial deposit to open your position, plus commission. It's that simple...
Opening the position
Early September our quote for ANZ is $21.18/21.19. You believe ANZ will start their recovery and decide to buy 1,000 shares as a CFD at $21.19, the offer price. Your initial outlay is just 5% x 1,000 shares x $21.19 = $1059.50. The same outlay with a regular stockbroker would only give you exposure to the performance of 50 shares.*
Our standard commission rate on this transaction is just 0.1% or $21.19 (1,000 shares x $21.19 x 0.1%) (see Contract Details). While your position remains open, your account is debited to reflect interest adjustments and credited to reflect any dividends.
Closing the position
A week later, ANZ has climbed to $22.60./22.61 in the market and you decide to take your profit. You sell 1,000 shares at $22.60, the bid price. The commission on this transaction is 0.1% or $22.60 (1,000 shares x $22.60 x 0.1%.
Your gross profit on the trade is calculated as follows:
Profit
| Closing level | $22.60 |
| Opening level | $21.19 |
| Difference | $1.41 |
Profit: $1.41 x 1000 = $1,410
To calculate the overall result on the transaction you would also have to take into account the commission you have paid and the interest and dividend adjustments. The Detailed Example includes these charges and adjustments.
Please note that this is a dual listed share, however for the purpose of this example we are quoting prices from the ASX. Also, examples quoted on this page are in Australian Dollars.
*Trading CFDs is a geared investment strategy, carrying a high risk to your capital. Only trade with money you can afford to lose. Please see our Risk Warning for more details.