Is my CFD math off? - Aussie Stock Forums

Thread: Is my CFD math off?

1. Is my CFD math off?

please, can someone tell me if I am calculating these CFD margin numbers wrong?

cost x %margincover x # of CFDs = margin

example short nasd100
at \$1820 x 1/2%cover x 300 CFDs= \$2730 in margin needed

but here is what throws me off. If the market moves against me by \$60, that's

60 x 300 = \$18,000

DO I TAKE THIS 18,000 X 1/2% TO FIGURE more margin needed????

2. Re: IS my CFD math off?

Originally Posted by weatherbill
please, can someone tell me if I am calculating these CFD margin numbers wrong?

cost x %margincover x # of CFDs = margin

example short nasd100
at \$1820 x 1/2%cover x 300 CFDs= \$2730 in margin needed

but here is what throws me off. If the market moves against me by \$60, that's

60 x 300 = \$18,000

DO I TAKE THIS 18,000 X 1/2% TO FIGURE more margin needed????

huh

1820*0.05/100*300 = \$2730, the price u pay to bet on 300 contracts @ \$1820 each at 0.5% margin. 0.5% margin

So if the nasdaq moves 60 points i.e. 3.3% i.e. 3.3>>>0.5.you would expect to win/lose almost 7 times what u originally paid. Which gives your answer (18k = 60*300)

3. Re: IS my CFD math off?

ok, I think I have this figured out

short 300 CFDs of NASD100 at \$1820 = 546k x .005(1/2% margin cover)= 2730 margin needed

if theres a rise to 1880, loss of 60 x 300= \$18000 in the neg

2730 + 18k= 20730 needed free in account to cover

also need 300 x 1880 x .005= 2820 needed for new margin

need editional \$90 free in account to cover extra margin,

so not only need additional margin, but base money to cover possibly market flux.

must be careful not to over leverage and be forced out of trade tsunami and mega quake.

4. Re: IS my CFD math off?

Or perhaps just a normal un eventful September in LA.

Id be happy to take \$3000 to \$18000 that it doesnt happen.

5. Re: Is my CFD math off?

You also need to be aware of 'variable margin' and how it is used with different brokers, usually applied daily.

6. Re: IS my CFD math off?

Originally Posted by weatherbill
must be careful not to over leverage and be forced out of trade tsunami and mega quake.
Are you shorting the market on your predicted Mega Quake?

Do you really think God wanted you to profit from such human tragedy, if it was to happen?

May be the fact that you wanted to profit from it has made god re think weather it should happen... may be you've jinxed it in a way.

But seriously, if you want to do a big short on the hunch, you should probably only do so on money you can afford to lose.

Imagine the headline "Shares shot up thanks to no earthquake"...

7. Re: Is my CFD math off?

Weatherbill you're essentially betting on megatsunami/earthquake on 1:1 odds.

I'm sure there are bookmakers out there offering 18,000:1 odds on the same event.

Risk only \$1 not \$18k

And if you're really sure, risk \$10 or even \$100

8. Re: Is my CFD math off?

Go for it 'weatherbill', put your house on it, a definite certainty.

9. Re: Is my CFD math off?

I"ve been making some good dollars on puts off the XJO

much much better IMO than CFDs

no worry on the cover margin..... just buy the little bull runs and sell the 2nd or 3rd day down.

buy back in on the ups

easy money in a bear market

10. Re: IS my CFD math off?

Originally Posted by skc
Are you shorting the market on your predicted Mega Quake?

Do you really think God wanted you to profit from such human tragedy, if it was to happen?

May be the fact that you wanted to profit from it has made god re think weather it should happen... may be you've jinxed it in a way.

But seriously, if you want to do a big short on the hunch, you should probably only do so on money you can afford to lose.

Imagine the headline "Shares shot up thanks to no earthquake"...
there is no such thing as a profit for those who live a non profit life style and give where it is needed, whether in good times or bad times.
good times and bad times come and go. The heart should remain the same. Big and generous

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