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Very Confused by My First Trade


hexagon999
Message added by JamesIG

This thread contains an account type known as "Limited Risk". Due to regulatory changes this account type no longer applies for European countries. If you have any questions relating to this, or wish to continue the discussion, please start a new thread. 

Question

Ok so I just opened a CFD account and deposited £300. Trying to get a feel for what going on, I bought two shares of Facebook. I put in a stop loss so the margin was only £16. Currently, the trade is on a loss of 30 cents. However, in my account it says my equity is £287. Where has my £13 gone? If I sell the shares, do I get the margin back? If so, where has the extra £3 in my account come from?

 

Thanks for the help and sorry for being so oblivious!

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Hi , thanks for the post and welcome!

 

If you are trading shares on a CFD account, remember that the commission is charged separately on both sides of the trade.  With US stocks, the commission is the higher of 2 cents/share or $15.  Given the current exchange rate, that would be a charge of around £12 to £13 on your account.

 

Your margin will be returned once you close a trade, or if your guaranteed stop is hit then this will transform into your realised loss on a limited risk account.

 

Does this explain the balances on your account?  Please shout if you have any more questions!

 

Thanks,

Hannah

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