Stock Market Trading & Investing

The formula for working out your profit or loss for any CFD share is as follows:

Long: (Buying) profit or loss = (exit price – entry price) * lots traded

Short: (Selling) profit or loss = (entry price – exit price) * lots traded

Example A:

You decide to buy 100 AAPL CFDs at $45 ,

The share price rises to $50 based on the company’s quarterly earnings.

You sell 100 AAPL CFDs at $50

Using the formula above for a long trade:

Profit or loss = (exit price – entry price) * lots traded

The result would be +$500

Example B:

You decide to sell 5 Amazon CFDs at $1,900 as you are expecting the price to fall.

However, the price goes up based on increasing company sales.

Therefore, you decide to close your position at the price of $1,919.

Using the formula above for a short trade:

Profit or loss = (entry price – exit price ) * lots traded

The result would be -$95.

Corporate Actions Formula

The basic formula used is d = p x n

d = dividend

p = position

n = dividend declared/number of index points (dividend amount)

Here’s the calculation we use for the dividend for equities:

A client opens a long (buy) position on 10,000 CFD shares of Apple (AAPL.OQ), with a net dividend declared at 2p.

The calculation is:

d = 10,000 x 0.02 = $200 (credited).

Another example we can look at is that a client opens a short (sell) position on 5,000 CFD shares of Deutsche Bank (DBKGn.DE), with a net dividend declared at 5p.

The calculation is: d = 5,000 x 0.05 = €250 (debited).

Commission on Stock CFDs*:

*Orbex is running ‘0 Commissions Promotion’ across all stock CFDs. This promotion is valid on Starter Accounts for a limited time only.

The commission applicable on shares is 0.0016 based on the notional value of the number of shares traded as following.

(Lots * shares price * commission percentage)

Example:

For example, let’s say a client opens a long (buy) position with 10 CFD shares of Apple (AAPL.OQ).

The market price at the time is 160 USD, and the commission is 0.0016 Therefore, the commission calculation is:

10 shares * $160 * 0.0016 =$2.5

For more information on trading Stock CFDs, feel free to contact your account managers. For any other inquiries, please email support@orbex.com. To start trading Stock CFDs: