Support our sponsors:

NZX 50 Index	4611.96	2.40
S&P/ASX 200	5191.20	0.00
Dow Jones Industrials	14839.80	21.00

Twitter

Facebook

RSS

A comparison of a CFD and a share trade

The major difference between CFD and shares is that CFD’s are bought using leverage.

This means that you can gain a larger exposure to the movement of the share for a relatively small outlay.

Keep in mind however, that leverage will magnify a profit, or a loss, so it does carry significant risk.

	CFDs	Shares
10,000 shares buy at $3.00	$30,000	$30,000
Initial outlay required	$300	$30,000
10,000 shares sold at $3.20	$32,000	$32,000
Gross Profit/Loss:	$ 2,000	$ 2,000
Return on Investment	666%	6.66%

Note: To simplify the scenario we have not included any fees, interest or dividend adjustments. These will vary between providers.

NZX 15 Index

More market prices »

Unsubscribe/Update »

RSS feeds »
Twitter »
Facebook »

Today's Market Numbers

NZX 50 Index	4611.96	2.40
S&P/ASX 200	5191.20	0.00
Dow Jones Industrials	14839.80	21.00

Stock Quote