Identify the contract

A CFD settles changes in an underlying price without transferring ownership of that underlying asset. Check the reference market, contract unit and settlement currency. Similar product names can hide different terms.

Separate price change from net results

For an illustrative long position of ten units, a move from 80 to 83 produces a gross difference of 30; a move to 77 reverses it. Spreads, commissions, financing and currency conversion affect the net result.

Read the margin terms

Margin is collateral, not a universal loss cap. Leverage magnifies account sensitivity. Close-out rules, negative-balance protection and availability depend on the relevant entity and contract terms.

Read an order preview

Imagine two accounts holding the same ten contract units under different margin requirements. An identical price change still produces the same gross difference. Compare quantity, margin and costs separately in the preview to avoid mistaking collateral requirements for the size of market exposure.

Source and reading notes

This is an independently written educational overview based on the ATFX reading linked below. Examples are illustrative, not live quotes or forecasts. It does not reproduce the original article or imply endorsement by its author.