You decide to sell the Oil and Gas Sector CFD. A City Index trader
quotes you 5043/5064 and you sell three CFDs at 5043.
Opening Trade
Price of Oil and Gas Sector CFD - 5043
Number of CFDs - 3
Value of CFDs - £15,129.00
NTR Required (7.5%) - £1,134.68
Daily Financing
On a nightly basis you receive financing for this position based
on Stirling LIBOR. Your financing rate might be LIBOR - 2.25%.
Assume this equates to a financing rate of (4.75% - 2.25%) 2.50%
and the closing price for the day is 5100. You receive 3 x 5100 x
2.75% / 365 = £1.05 for holding the position overnight. This will
be credited to your account on the next trading day.
Closing Trade
20 days later the Oil and Gas Sector CFD is quoted 5125/5146 and
you buy three CFDs at 5146.
Price of Oil and Gas Sector - 5146
Number of CFDs - 3
Value of CFDs - £15,438.00
Closing Value of CFDs - £15,438.00
Opening Value of CFDs - £15,129.00
Loss on Trade - (£309.00)
Financing (20 days) - £20.96
Overall Loss on Trade - (£329.96)