understanding the trade dialogue box and calculating the figures

[Guest miles]

I have read some (admittedly not all) of the help and I can't find the answer so I would be grateful of any pointers or simple explanations....

When I open the CFD Trade box I am struggling to relate the figures and options to the terms in the text...

Upon opening the Tesla trade box (TSLA) I see I buy in lots of 1 contract.  Now I think from the help text that as this is a share 1 contract is worth 10% of the share price (standing at 304.23 | 304.56 at the time of the example)  So using that logic one contract = approx 30 dollars....But that logic must be wrong as it's already more than the $18.29 required.  So that must be wrong.

 

I also don't understand why the minimum Close - Stop position is 1524pt (the first value that appears when I click on the up button).

 

How do I use the information presented in this dialogue box to calculate the margin and also the point at which it will drop me out of the trade if the market moves against me?

I'm looking forward to trading on here but at the moment fundamental ignorance of the tool is working against me!

 

Many thanks

 

Miles

[Guest miles]

OK, following on from a chat with a very helpful IG support person I've learnt the following (posted in case some other newbie has the same confusions!):

1) The margin is calculated from A+B where

 A = Shares bought * the points shown in the Close Conditions: Stop box

 B =  1% * Share Price * Number of shares bought.

 

The B element is only payable if the stop order actually executes.

 

The points shown in the close conditions: Stop box is the number of cents (as this is a US company) - I know this is probably head slapping stupid but for some reason I thought a point was related to pounds/dollars rather than pence/cent

 

Hope this helps someone and many thanks to Andreas for putting up with me

 

Miles