CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Your profit or loss from a trading position depends on whether you buy (go long) or sell (go short). The calculation follows these formulas:
BUY position: Profit/Loss = Quantity × (Closing Price - Opening Price)
SELL position: Profit/Loss = -Quantity × (Closing Price - Opening Price)
💡 Example
You open a long BUY position of 10 units on the NASDAQ 100 at an opening price of 9075.50. Later, you close the position at 9077.80.
The profit calculation is:
Profit = 10 × (9077.80 - 9075.50) = 10 × 2.30 = $23
How does currency conversion affect the result?
If your account currency is different from the traded instrument, the profit is converted using the current exchange rate. The FX fee is 0.5% of the realised profit or loss.
💡 Example
For example, if your account is in GBP and the USD/GBP exchange rate is 0.7942, the profit in GBP would be:
Profit in GBP = $23 × 0.7942
Profit in GBP = £18.27
In which currency is my profit calculated on the CFD account?
Your profit calculation depends on the type of instrument you’re trading. Here’s how it works:
- Commodities: Instruments like Gold, Silver, and Oil are traded in USD.
- Stocks and Indices: Traded in GBP, EUR, or USD, depending on their origin (e.g., US stocks in USD, UK stocks in GBP).
- Currency Pairs: For pairs like EUR/USD, the profit or loss is calculated in the second currency of the pair (in this case, USD).