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The following is an example of trading Stock Indices with Trade Real-Time.
OPENING THE POSITION
Our quote for the FTSE 100 is currently 6206/6208. You think the blue-chips look strong and decide to buy two contracts at 6208. (One contract is the equivalent of £10 per index point.) There is no commission to pay.
To open your position you supply a deposit of £2000 per contract = £4000. You will then make or lose £20 for every point the sell price rises above or falls below 6208.
CLOSING THE POSITION
The market moves in your favour over the next few days, and you decide to take your profit. Our quote has risen to 6290/6292, and you close your position by selling two contracts at 6290.
Your profit on the trade is calculated as follows:
PROFIT ON TRADE
| Closing level | 6290 |
| Opening level | 6208 |
| Difference | 82 |
Profit: 82 points x 2 contracts x £10 per point = £1640
The trade referenced above would have had a corresponding loss associated with it if the trader had taken short position. Trading on margin magnifies both the profit and loss of any trade.
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