Example of buying Facebook stock:
1. Choose a particular asset
Let's take Facebook stock as an example. The price is currently 116.65/117.03 USD.
2. Sell or buy.
You choose to buy 50 shares at the offer price of 117.03 USD because you believe the market will rise (otherwise you could sell at the bid price of 116.65 USD if you believed the market will fall).
3. Margin
In this example, your total exposure is 50 shares x 117.03 USD (buy price) = 5,851.5 USD.
The margin required on Facebook stock is 5%, so to open this trade you would need to have 5,851.5 USD x 5% = 292.57 USD in your account (or the equivalent in other currency).
4. Closing your trade.
Over the course of the day, the market rises, and Facebook's stock price is 132.35/132.67 USD. You choose to close your trade at the price 132.35.
5. Profit/Loss Calculation
There are two profit calculation methods in our trading platform.
The first method is applied to positions in Stocks, ETFs, and CFDs on all these.
Calculation formula:
Short position (Sell)
(<Opening price>*<Position volume> - <Closing price>*<Position volume>) + <Additional expenses>
Long position (Buy)
(<Closing price>*<Position volume> - <Opening price>*<Position volume>) + <Additional expense>
Example:
Twitter: 100 shares, long position (buy), opening price: $22.00 USD, сlosing price: $26.00, interest: $0.49.
(26.00 100 – 22.00 100) + (– 0.49) = $399.51
The second profit calculation method is applied to positions in all other instruments except for Stocks, ETFs, and CFDs on all these.
Calculation formula:
Short position (Sell)
(<Opening price> - <Closing price>) * <Position volume> + <Additional expenses>
Long position (Buy)
(<Closing price> - <Opening price>) * <Position volume> + <Additional expenses>