Finspreads miniCFD Centre

Trading Academy

What is it?
The Trading Academy is a five-week course introducing you to miniCFDs and guiding you week by week through the exciting world of trading miniCFDs..

What are the benefits?
The Academy is primarily intended to help you get a better understanding of trading miniCFDs During this course, you can trade from just one share at a time. This will enable you to experience trading on small positions.

How do I join?
All miniCFDs clients will be automatically enrolled on the Trading Academy course.


Example: Trading a Tesco miniCFD
Your Trade Long Position (1 share) Long Position (100 shares)
Opening Contract Value Buy a miniCFD on 1 share at 250p per share 2.50 Buy a miniCFD on 100 shares at 250p per share 250.00
Opening Commission (0.25%) 0.6p 0.63
Initial Margin Required(10%) 0.25 25.00
Seven Days Later
Closing Contract Value Sell a miniCFD on 1 share at 289.5 per share 2.90 Sell a miniCFD on 100 shares at 289.5 per share 289.50
Closing Commission (0.25%) 0.7p 0.72
Daily Financing Cost x 7 days*1/365 x 6% x (270px number of shares)x7 days. 0.05 5.49
Overall profit/loss calculation
Your closing Contract Value 2.90 290.00
Less your opening Contract Value 2.50 250.00
Profit on Contract Value 0.40 40.00
Less Opening and Closing Commission 0.02 1.35
Less daily financing costs 0.05 5.49
Your profit 0.33 33.16

* Daily financing is based on the prevailing bank rate +/- 2%

The above example shows the profit you would have made on 1 Tesco share and 100 Tesco shares over the same period. Whilst the amount of profit made on 1 share is minimal, if the market had gone against you, your loss would have also been minimal. This will allow you to gain experience trading miniCFDs knowing that an error in judgement will not prove too expensive. The 100 share example is the minimum amount you would need to trade after you had completed the five week trading academy.

miniCFD trading carries a high level of risk to your capital. Only speculate with money you can afford to lose. miniCFD trading can be very volatile. Prices may move rapidly against your interests and resulting losses may require further payments to be made. miniCFDs trading may not be suitable for all customers; therefore ensure you fully understand the risks involved, and seek independent advice if necessary.

The 100 share example is the minimum amount you would need to trade on a UK stock after you had completed the five week Trading A cademy.


miniCFD trading carries a high level of risk to your capital. Only speculate with money you can afford to lose. miniCFD trading can be very volatile. Prices may move rapidly against your interests and resulting losses may require further payments to be made. miniCFDs trading may not be suitable for all customers; therefore ensure you fully understand the risks involved, and seek independent advice if necessary.

 




Mini CFD Centre
  Welcome
  What is a miniCFD?
  Cost comparisons
  Benefits
  Trading academy
  How do I trade?
  Maximising profit minimising risk
  Why trade with miniCFDs?


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