Buying a CFD

If the price for Microsoft Company is $26.474 on the Bid and $26.546 on the Ask, you can buy any desirable number of CFDs at the Ask price. For example, you buy 1000 CFDs at $26.546. Later Microsoft's price increases to $27.245 on the Bid and $27.317 on the Ask. You can sell the 1000 CFDs at the Bid price of $26.317 which means you have made a profit of $771 and is calculated as follows:

(Sell Price – Buy Price) x Number of CFDs

(27.317 - 26.546) x 1,000 = $771

Selling a CFD

If the price for Microsoft Company is $26.474 on the Bid and $26.546 on the Ask, you can sell any desirable number of CFDs at the Bid price. For example, you sell 1000 CFDs at $26.474. Later Microsoft's price decreases to $25.500 on the Bid and $26.105 on the Ask. You can buy the 1000 CFDs at the Ask price of $26.105 which means you have made a profit of $369 and is calculated as follows:

(Sell Price – Buy Price) x Number of CFDs

(26.474 - 26.105) x 1,000 = $369