Equity CFD - Example 1

Day 1: BP is trading at 380p, the Spread Co CFD spread is 379.6 - 380.4. You decide to buy 1000 BP CFDs.

Contract	Buy / Sell	Quantity	Price	Trade Value	Margin Requirement (5%)
BP	Buy	1000	380.4	£3804.00	£190.2

You hold the position for 1 night and are therefore charged 1 day's financing.

Overnight financing rate		Value Of Position		Financing Charge
2.55% (GBP LIBOR +2%)/365		£3804.00	£0.27

Day 2: BP is trading at 400.2 - 401.0. You decide to sell the position you're holding.

Contract	Buy / Sell	Quantity	Price	Trade Value	Margin Requirement (5%)
BP	Sell	1000	400.2	£4,002.00	£200.10

Trading Summary

Product	Buy / Sell	Quantity	Price	Value
BP	Buy	1000	380.40	£3,804.00
BP	Sell	1000	400.20	£4,002.00
			Trade profit / loss	£198.00
			Finance charge	-£0.27
			Total profit / loss	£197.73

Index CFD - Example 2

Day 1: The UK100 Index is trading at 5,300 - 5302. You decide to sell 10 UK100 CFDs.

Contract	Buy / Sell	Quantity	Price	Trade Value	Margin Requirement (1%)
UK100	Sell	10	5,300	£53,000.00	£530.00

You hold the position for 1 night, but as we don’t charge you to be short a position overnight there is no financing charge.

Day 2: The UK100 Index is trading at 5348 - 5350 and you decide to close the position.

Contract	Buy / Sell	Quantity	Price	Trade Value	Margin Requirement (1%)
UK100	Buy	10	5,350	£53,500.00	£535.00

Trading Summary

Product	Buy / Sell	Quantity	Price	Value
UK100	Sell	10	5300	£53,000.00
UK100	Buy	10	5350	£53,500.00
			Trade profit / loss	-£500.00
			Finance charge	£0.00
			Total profit / loss	-£500.00

CFD trading carries above average risk and is not for everyone, so please ensure you understand the risks. You should be aware that it is possible to lose more money than your initial deposit and that you may be required to make further deposits at short notice.

Please read the risk warning.