Share trading takes the form of Contracts for Difference (CFDs), ie profit realized by the difference between the sale and repurchase price without requiring physical possession.
In order to make a purchase you need only 10% own funds of the transaction value and simultaneously gain / loss is recognized in full in your account. Thus one can speculate with the price of the shares of the world's leading companies.
Contract for Difference (CFD) is becoming more popular in terms of high speculative profits that can be achieved with strong movements of shares and the main financial indices within one day.
Example: Deal with shares of Coca-Cola
Opening of a position:
You decide that the price of Coca-Cola will increase. Price in Meta Trader 4 platform is 65.12 / 65.34. Buy 100 shares of Coca-Cola at a price of 65.34 dollars per share
The deal amount is $ 6,534 , to open it you need to deposit $ 653.40. The standard commission, Varchev Finance charge is $ 0.05 per share or $ 5.00.
100 shares Coca-Cola
100 x $0.05 = $5.00
Volume of transaction
100 x $65,34 = $6534,00
Required initial margin
$6534 x 10% = $653,40
After a few days the shares of Coca-Cola increased the quotation in the Meta Trader 4 platform is 70.12 / 70.34. Decide to collect their profits and sell 100 shares of Coca- Cola price of $ 70.12. The standard commission for the transaction is $ 0.05 or $ 5.00.
The profit realized from the position is calculated as follows:
$4,78 х 100 = $478,00
In this example, the final result of the operation is calculated as follows: