When a day trader is in a short trade, they have entered a trade by selling a contract (or group of shares, or forex lot), and are hoping that the price will go down.

EXAMPLE : XAU (GOLD)
Sell Price (in USD) $ 1,200.00
Leverage 100:1
Margin Requirement (in USD)  $          12.00
CFDs Contract Size (Shares) 8,000
Total Investment = CFDs Contract Size x Margin Requirement (in USD) $ 96,000.00
Buy Price (in USD) $ 1,198.50
Gain / Loss per Share (in USD)  $          1.50
Gross Gain / Loss of the Investment (in USD)  $ 12,000.00
Trading Commission =1% of the Margin Requirement (in USD)  $      960.00
NET GAIN / LOSS OF THE INVESTMENT (in USD) $   11,040.00
RETURN ON EQUITY (in Percentage)

11.50%

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