Example: Selling Wal-Mart
It is now early January and our quote for Wal-Mart is 56.16 /
56.23 US dollars. You think the share price will decline and decide
to sell £1/point at 56.16 as a CFD position. Our intuitive deal
ticket shows that your position is equivalent to 146.43 shares.
A week later, fear for a severe recession has driven the share
price lower, and our quote for Wal-Mart has dropped to 52.63 /
52.68. You decide to take your profit, and close your position by
buying £1/point at 52.68.
You have just made a profit of £1 x (56.16 - 52.68) = £348
Risk Warning
Spread Betting, CFDs and Forex are high risk investments and it is possible to lose more than your initial deposit. Spread Betting, CFDs and Forex are not suitable for all investors and you should ensure that you understand the risks involved and, if necessary, obtain independent financial advice to ensure that these products fit your investment objectives. †Tax law can be changed or may differ if you pay tax in a jurisdiction other than the UK. Gekko Global Markets Ltd. is a company registered in England and Wales under register number 03148972. Gekko Global Markets Ltd. is regulated and authorised by the Financial Services Authority, FSA Register number 184333.