Forex Examples
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Trade all our Forex contracts commission-free. You can open a new position at just 1% of the contract value.
The only charge is our dealing spread: for most major FX pairs this starts from just 1 or 2 pips, for a full or mini contract. All our contract sizes are set out in the Contract Details.
Selling EUR/USD
Opening the position
You decide to go short of the euro against the dollar. Our quote is 1.4742/1.4743, and you sell 2 mini contracts (the equivalent of €20,000) at 1.4742.
The value of your position is €20,000 x 1.4742 = $29,484. To open the position you supply a deposit of just 1% of the position. Your deposit is therefore 1% x $29,484 = $294.84p. Please be aware, however, that CFDs are a leveraged product and that it is possible to lose more than your initial deposit.
Interest adjustments
While the position remains open, your account is debited or credited to the current tom-next rate. Tom-next expresses, in pips, the difference between the interest paid to borrow the currency that is being notionally sold overnight, and the interest received from holding the currency that is being notionally bought overnight. An administrative charge of no more than 0.3% per annum applies on either side of the current tom-next spread. This maximum charge will apply to both regular and mini-contracts.
Closing the position
Nearly two weeks later, EUR/USD has fallen to 1.3976/1.3977, and you take your profit by buying 2 mini contracts at 1.3977. Your profit on the trade is calculated as follows:
Profit on trade
| Opening transaction: €20,000 (2 mini contracts) x 1.4742 | = $29,484 |
| Closing transaction €20,000 (2 mini contracts) x 1.3977 | = $27,954 |
| Profit on trade: $1530 |
To calculate the overall profit, you also have to include the accumulated daily interest rate adjustments.
Buying EUR/USD
Opening the position
You decide to go long of the euro against the dollar. Our quote is 1.4742/1.4743, and you buy 2 mini contracts (the equivalent of €20,000) at 1.4743.
The value of your position is €20,000 x 1.4743 = $29,486. To open the position you supply a deposit of just 1% of the position. Your deposit is therefore 1% x $29,486 = $294.86p. Please be aware, however, that CFDs are a leveraged product and that it is possible to lose more than your initial deposit.
Interest adjustments
While the position remains open, your account is debited or credited to the current tom-next rate. Tom-next expresses, in pips, the difference between the interest paid to borrow the currency that is being notionally sold overnight, and the interest received from holding the currency that is being notionally bought overnight. An administrative charge of no more than 0.3% per annum applies on either side of the current tom-next spread. This maximum charge will apply to both regular and mini-contracts.
Closing the position
Against your expectations, EUR/USD later falls to 1.4176/1.4177, and you decide to cut your losses by selling 2 mini contracts at 1.4176. Your loss on the trade is calculated as follows:
Loss on trade
| Opening transaction €20,000 (2 mini contracts) x 1.4743 | = $29,486 |
| Closing transaction €20,000 (2 mini contracts) x 1.4176 | = $28,352 |
| Loss on trade: $1134 |
To calculate the overall profit, you also have to include the accumulated daily interest rate adjustments.
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