TRADING SHARE CFDS
The following is an example of trading Share CFDs with Trade Real-Time


It is July and Google Inc Holdings are quoted in the stock market at 523.35 – 523.36. You check our live price for Google Inc

We quote you

52282 – 52389

Sell Buy
Thinking Google is overvalued, you decide to 'sell' 100 shares at
$522.82
Thinking the stock is cheap, you decide to 'buy' 100 shares at
$523.89

The margin rate of Google is 10% this means you will have to put up only 10% of the total value of the stock

Sell Buy
The total consideration of the position is 100 x $522.82 = $52,282.00

The initial margin we would require would be 10% of this, $5,228.20
The total consideration of the position is 100 x $523.89 = $52,389.00

The initial margin we would require would be 10% of this, $5,328.90

Over the next month (30 days), the price of Google rises to 556.12/556.13 in the stock market

Our quote for Google is now 555.56 – 556.69

During this period the interest on your position is calculated daily, by applying the applicable interest rate to the daily closing value of the position. In this example the typical interest charged is The Fed Rate +/- 2.5%

Because you are short you receive interest Because you are long you have to pay interest
Using the fed rate as 5.32%, you are receiving interest or 5.32 – 2.5 = 2.82%

Therefore to calculate the daily interest you receive $52,228.0 x 2.82 / 360 = $4.10

Obviously the daily closing value for will change and therefore so will the daily interest received but for this example we will presume that the average daily interest is $4.10 therefore the interest received for the 30 day holding period is $4.10 x 30 = $123.00
Using the fed rate as 5.32%, you are receiving interest or 5.32 + 2.5 = 7.82%

Therefore to calculate the daily interest you pay $52,228.0 x 7.82 / 360 = $11.35

Obviously the daily closing value for will change and therefore so will the daily interest paid but for this example we will presume the average daily interest is $11.35 therefore the interest paid for the 30 day holding period is $4.10 x 30 = $340.50

Although Google has never paid a dividend for the purpose of this example we are going to presume that Google went ex dividend during the holding period and paid a gross dividend of $2.23

Because you are short you pay 100% of the gross dividend Because you are long you receive 100% of the net dividend (85% of the gross dividend)
Therefore you need to pay 100 x 2.23 x 100% = $223.00

Loss is calculated as follows:

Closing price$522.82
Opening price$556.69
Difference-$33.87

You lose $33.87 x 100 shares = $3,387.00
Therefore you will receive 100 x 2.23 x 85% = $189.55

Profit is calculated as follows:
Closing price$523.89
Opening price$555.56
Difference$31.67

You make $31.67 100 shares = $3,167.00

Additional Costs Profit is calculated as follows:
Funding Received+$123.00
Dividend Paid-$223.00
Difference-$100.00

Your total overall Loss -$3387.00 - $100 = $3,487.00
Funding Paid-$340.50
Dividend received$189.55
Difference-$150.95

Your total overall Profit $3,167.00 - $150.95 = $3,016.05

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