How does leverage affect profits? Back to list

Member SinceMar 07, 2022

Posts 180

Agaricy96

Aug 05, 2022 a 02:55
Assume that the share price of company XYZ recovers after great earnings, rising to $2.60, and you decide to exit your position.
You would have earned a total of $100 by trading stocks and CFDs (2.60 - 2.50 * $1,000). The return on your CFD, on the other hand, would be 20%, compared to only 4% on your investment.
Why? Because you deposited $500 to open the CFD trade.

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