Examples of CFD trades when compared to a Financial Spread Betting
Example 1  Share Dealing
We wish to take a Long position in Barclays in anticipation of a rise in price and wish to expose ourselves to 1000 Shares:
Notes:
 The interest rate on the CFD is calculated as follows:
Value of position = 1000 Shares x £4.43 (the Mid price) = £4430
Interest @ 5.5% p.a. of the total position = £4430 x 5.5% = £243.65 p.a.
£243.65 divided by 365 = £0.667.
(Please do check exactly how the Interest charge is computed with the
providers  there will be differences).
 The wider spread and higher price on the Financial Spreadbet reflects that it is
a quarterly contract and takes account of Interest and Dividends.
 The profit is calculated by valuing the positions at the prevailing potential
closing price of the position i.e. the Bid Price  Opening Offer price x Size of
Exposure.
 Interest will accrue on the CFD Daily until the position is closed.
 No interest would have accrued had the position not been held overnight.
Example 2  Index Trading
We wish to take a Short position on the Dow Jones Index in anticipation of a fall in price:
Notes:
 The Notional Trading Requirement on the Financial Spreadbet is usually at a
fixed level e.g. 400  you would multiply this number by your stake to
calculate your Margin Requirement e.g. 400 x £10 = £4000.
 The interest rate on the CFD is calculated as follows:
Value of position = £10 Per point x 8486.5 (the latest Mid price) =
£84,865
Interest @ 1.5 % p.a. of the total position = £84865 x 1.5% = £1272.97
p.a.
£1272.97 divided by 365 = £3.487.
(Please do check exactly how the Interest charge is calculated  there will
be differences.)
 The wider spread and higher price on the Financial Spreadbet reflects that it is
a quarterly contract and takes account of Interest and Dividends.
 The profit is calculated by valuing the positions at the prevailing potential
closing price of the position i.e. the Offer Price  Opening Bid Price x Size of
Exposure.
 Interest will accrue on the CFD Daily until the position is closed.
Example 1  Share Dealing
We wish to take a Long position in Barclays in anticipation of a rise in
price and wish to expose ourselves to 1000 Shares:

Financial Spreadbet 
Contract for Difference 
Bid Price 
£4.2935 
£4.275 
Offer Price 
£4.3075 
£4.285 
Type of Contract 
Quarterly 
Open until Closed 
Size of Exposure 
£10 per point 
1000 Shares 
Value of Contract 
£4307.50 
£4285 
Commission (if applicable) 
£0 
£10.71 (0.25%) 
Margin Requirement at 10% 
£430.75 
£428.50 
Price appreciates 15p and the position is held overnight. 
Bid Price 
£4.4435 
£4.425 
Offer Price 
£4.4575 
£4.435 



Interest Charge 
£0 
£0.67 






Current Profit 
13.6 points @ £10 
14p x 1000 Shares Less interest & Commission 
Profit £'s 
£136 
£128.62 
Notes:
 The interest rate on the CFD is calculated as follows:
Value of position = 1000 Shares x £4.43 (the Mid price) = £4430
Interest @ 5.5% p.a. of the total position = £4430 x 5.5% = £243.65 p.a.
£243.65 divided by 365 = £0.667.
(Please do check exactly how the Interest charge is computed with the
providers  there will be differences).
 The wider spread and higher price on the Financial Spreadbet reflects that it is
a quarterly contract and takes account of Interest and Dividends.
 The profit is calculated by valuing the positions at the prevailing potential
closing price of the position i.e. the Bid Price  Opening Offer price x Size of
Exposure.
 Interest will accrue on the CFD Daily until the position is closed.
 No interest would have accrued had the position not been held overnight.
Example 2  Index Trading
We wish to take a Short position on the Dow Jones Index in anticipation of a fall in price:

Financial Spreadbet 
Contract for Difference 
Bid Price 
8534 
8559 
Offer Price 
8544 
8564 
Type of Contract 
Quarterly 
Open until Closed 
Size of Exposure 
£10 per point 
£10 per point 
Value of Contract 
£85,340 
£85,559 
Margin Requirement at 5% 
£4267 
£4279 
Price falls 75 points and the position is held overnight. 
Bid Price 
8459 
8484 
Offer Price 
8469 
8489 



Interest Received 
None 
£3.49 






Current Profit 
65 Points @ £10 
70 Points @10 
Profit £'s 
£650 
£703.49 
Notes:
 The Notional Trading Requirement on the Financial Spreadbet is usually at a
fixed level e.g. 400  you would multiply this number by your stake to
calculate your Margin Requirement e.g. 400 x £10 = £4000.
 The interest rate on the CFD is calculated as follows:
Value of position = £10 Per point x 8486.5 (the latest Mid price) =
£84,865
Interest @ 1.5 % p.a. of the total position = £84865 x 1.5% = £1272.97
p.a.
£1272.97 divided by 365 = £3.487.
(Please do check exactly how the Interest charge is calculated  there will
be differences.)
 The wider spread and higher price on the Financial Spreadbet reflects that it is
a quarterly contract and takes account of Interest and Dividends.
 The profit is calculated by valuing the positions at the prevailing potential
closing price of the position i.e. the Offer Price  Opening Bid Price x Size of
Exposure.
 Interest will accrue on the CFD Daily until the position is closed.