Hi all, I woulld like some info about cfds -
I am learning about them and the risks involved in trading them. My question is : If my cfd account receives a variation margin credit of say $500.00 from my provider and I then sell the cfds at a profit do I also keep the $500.00 my provider has credited to my account? . If I dont keep it what happens to it ? Conversely if the price of my cfds goes south and I sell at a loss do I then pay to the provider the amount I owe in my cfd account by way of a debit variation margin, again say $500.00 ( as well as the loss on the cfds)?. I have seen numerous examples of trades showing a calculation of profit or loss but in calculating that profit or loss figure they dont show and no mention is made of the variation margin received from or owed to the provider, which IMO could be a serious misrepresentation.
Would appreciate some advice.