Stock CFDs are leveraged products; whereby traders trade stocks with leverage.
Trading stock CFDs provides you with access to the stock market of some
of the larger, well-known companies.A trader can purchase a contract for difference (CFD) on a
particular equity, speculating of the price difference of an underlying
asset (in this case a share) without having to own it.Stock CFDs trading also has significant
benefits over the traditional stock trading. It allows you to trade with
relatively small amounts. Apart from that, Trading Stock CFDs gives you an opportunity to use
leverage to increase your profits,allowing you to take advantage of
price moves even in a falling market.
It should be noted that stock CFD trading is not stock trading. Stock CFD trading does not enjoy
shareholder rights such as dividends, voting, etc. Investors are
only trading in the price fluctuations of the stock.
Stock CFD is a two-way trade, which can be either buy long or sell
short. Briefing speaking, if you think that the price of stock will rise, buy it; if you think it will
fall, sell it. If the direction is judged correctly, you can make a profit.
Calculation as follows:Total profit= (selling price – purchase
price) x contract unit x lot size ± overnight interest
Note: There is no need to pay overnight interest on the closing of
the position on the same day of opening the position;
the actual overnight interest is subject to the platform display.
If you are optimistic that Alibaba will rise to 137.14, buy 1 lot of
Alibaba stock contract (1 lot = 100 contract units) at 125.78. If the price rises to the
expected point, you close the position at 137.14 and earn Taken the gain of 11.36 points
= (selling price – purchase price) x contract unit x lot
size ± overnight interest= (137.14-125.78)*100*1±0
Note：If the position is not closed within the same day and continues to be held until the next trading day, we will perform the overnight interest calculation.
Phone position closing hotline:
+84 2844582359 (Fees required: $8)
Leveraged products carry a high level of risk to your capital and you should only deal with money
you can afford to lose. The value of investments can fall as well as rise and you may lose your
initial margin payment. BG Trade reminds you, please note that leveraged products may not be
suitable for everyone, so please ensure you fully understand the risks.