Trading example: Cash CFD BTCUSD
|Quote||4500.50 / 4512.50|
|Contract size||1 Standard size
Trade example (Sell):
The quote means you will sell at: 4500.50
Strategy: you believe the BTCUSD will go lower, so you sell one contract at USD 4500.50
Margin Requirements: You need to have the required margin available on your contract (see symbol specifications in MT4 platform)
Contract Size: The value of 1 see contract of BTCUSD is Price x Contract Size (4500.50 x 1 = $4500.50 USD)
Note: The contract size in monetary terms vary in accordance with market price.
Trade example (Close):
BTCUSD is now quoted at 4450.50 / 4462.50
Strategy: You decide to take profit and close the position at 4462.50
Profit/Loss calculation: (opening value – closing value) x contract size = profit/loss.
Calculation: (4500.50 – 4462.50) x 1 = $38.oo USD (Profit)
Account currency: Your profit/loss will now be converted to your account currency.