Complete example of trading a CFD on Index Plus

• Suppose we want to take a long position of 1 contract on the Euro 50 Plus x 10 index trading at 4,901 / 4,902. The margin that we will have to deposit for this CFD will be 5%. Therefore, the margin
  to be paid will be as follows: 4,902 x 10 = 49,020 x 5% = EUR 2,451.

Once the CFD is purchased at 4,902 we will make a profit or loss depending on the price movement in the market. For example: 

• Trade with a profit:

If the trading price of the Euro 50 Plus x 10 index rises to 4,911 / 4,912 and we decide to close our position, the result will be as follows: (4,911 X 10)-(4,902 x 10) = 49,110-49,020 = EUR 90.

In the case of the EURO 50 Plus x 10 index, a purchase and sale fee of EUR 3.5/contract is charged, both on the purchase and sale, so that the net profit from the transaction will be EUR 83, which represents a return of 3.38%.

• Trade with a loss:

If, on the other hand, the trading price of our position, the result will be as follows: of the Euro 50 Plus x 10 index falls to 4,890 / 4,891 and we decide to close
our position, the result will be as follows: (4,890
X 10)-(4,902 x 10) = 48,900-49,020 =-120 EUR.

Adding the purchase and sale fees, the total net loss will be EUR -127, which represents a return of -5.18%.

• Overnight financing cost

If in either of the two examples above, you keep your position open overnight once the market
closes, you will have to add the overnight financing cost to your costs. This cost is calculated as follows:

Long position: Notional x (0% + Benchmark rate%) / 365

The benchmark rate in this case is 1M EURIBOR.

We apply the formula for taking short positions: 49,020 x [0% + 3.686%)] / 365 = €4.95 / day.

Summary of costs

• Notional value of the trade: 4,902 x 10 = EUR 49,020
• Margin: 5% 
• Spread: 1 (Market) 
• Euribor 1M: 3.686% 
• Purchase fee: EUR 3.5 
• Funding cost*: EUR 4.95 
• Sales fee: EUR 3.5
• Total costs: EUR 11.95

*Only if the position is held from one
day to another.