With CFD trading you buy a CFD based on a certain amount of the underlying asset. In this case, we will examine how to trade futures.
The following worked examples show how you can use CFDs to trade a number of different markets. futures trading example
These examples show trades that result in both profits and losses.
CFD trading example (Index) on Atlantic FX Pro – Selling the US TECH 100
You believe that the US TECH 100 will fall so you decide to sell a CFD based on 100 underlying futures contracts for that market.
Atlantic FX quotes you a spread of $13.47/$13.49 for Yahoo (YHOO).
Futures Trading Examples:
| OPENNING TRADE | |
| Price of US TECH 100 is $1,280 | 1280 |
| Number of underlying shares | 100 |
| Value of total position ($) | 128,000 |
| Transaction Fee $.75 per contract | 75 |
| Margin requirement @ 5% (US$) | 6400 |
After 2 days the market has fallen and you decide to close your position.
| CLOSING TRADE (2 days later) | |
| Price of US TECH 100 is $1,250 | 1250 |
| Number of underlying contracts | 100 |
| Value of total position ($) | 125,000 |
| PROFIT (loss) ON TRADE | |
| Opening value ($) | 128,000 |
| Closing value ($) | 125,000 |
| Gain on position ($) | 3,000 |
| Transaction fee ($) | (75) |
| Overall loss on trade ($) | 2,925 |
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