CFD Trade Example

About Trading CFDs

ICM Brokers offers CFD trading on a variety of stocks that are well capitalized and highly liquid.  These Contracts for Difference mirror the underlying stocks with most of the benefits without having to physically own them.  The real advantage of trading CFDs with ICM Brokers is the lower cost of trading and the higher leverage that is usually not offered when trading cash equities.  Additionally, the ICM Brokers Trading Platform makes available a full back office function that makes it easy for traders to realize the value of open positions as well as the profit and loss calculations of closed trades.  However, it is important that traders understand how a trade works and how to calculate profits and losses manually.

CFDs at ICM Brokers

ICM Brokers focuses on giving access only to those equity CFDs that are well capitalized, highly liquid, and most desired by online traders.  By limiting our product offering, we are able to guarantee best market execution for our customers.

Margin Requirements

In order to buy or sell 1 CFD contract (lot) with ICM Brokers, the investor must have a minimum of $1,000 in the account ($2,000 when market is closed or during holidays).  In order to guarantee that clients accounts do not extend into negative equity, the trading platform automatically closes all positions at the 50% Equity/Margin ratio.

Profit and Loss Calculation Examples

Sell 2 GE at 14.20  |  Buy 2 GE at 13.10

   14.20 (open price)   x 2 (lots traded) x 1,000 (contract size) = 28,400
   13.10 (close price)   x 2 (lots traded) x 1,000 (contract size) = 26,200
                                                                                                        $ 2,200 (Profit)
Buy 3 IBM at 84.60  |  Sell 3 IBM at 86.10

   84.60 (open price) x 3 (lots traded) x 1,000 (contract size) = 253,800
   86.10 (close price) x 3 (lots traded) x 1,000 (contract size) = 258,300
                                                                                                        $ 4,500 (Profit)

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