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CFDs newbie question


Guest Fatfinger

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Guest Fatfinger

When you trade CFDs, is 1 "share" the equivalent of 100 shares? This is the only sense I can make of the estimated loss showing in the stop loss where if it goes down 100 points, the loss is $100 on a 1 share.

 

If that a right, why is referred to as 1 "share" when it means 100!?

 

Tried asking Support and they said there s an error in the app. But reading some posts here, there was a reference to CFDs and each "lot" being 100 shares.

 

Can someone clarify for me?

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Hi  (great display name btw) 

 

When you are on a CFD account and dealing with shares, one single CFD share will equate to one single underlying share. When you are dealing other assets on a CFD account other than shares you deal in lot sizes (such as gold, FX, cryptocurrencies etc). 

 

Please can I just check - are you using the Android App? Currently there is a known issue which is in the process of being resolved, where the CFD Android App is pulling calculations based on Spread Betting. This maybe where the issue lies? Let me know and I can investigate further - please also just let me know the share name you are looking at. 

 

Further Knowledge 

On a Spreadbetting account, your £/pt or $/pt bet will equate to the equivalent 100 shares. For example, if you deal £1 per point on a HSBC share, it is the same as betting on the price movement of 100 shares. If you deal $1/pt on a US share, its the same as 100 shares. Therefore, if you take a £1/pt bet on a US share, you first need to convert GBP to USD (so £1 = $1.30 roughly) and therefore you would be betting on 130 shares price movement. 

 

 

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Guest Fatfinger

Thanks James

 

I m on iPhone but it seems to be treating CFDs as though spread bets as, e.g a long position of 1 unit on Amazon with a 100 point stop loss shows a $100 loss when it should be $1 from what i understand?

 

If you try putting 10 units in, the stop loss figure gives you a heart attack.

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Hi  - I have had a look at the iOS App and can see what you are referring to.

 

I have forwarded this onto our head of Technical Support and iOS developers who have confirmed this is a recently known issue. We will be looking to get this resolved, however I imagine it will have to fall into line with our software roll out / updates. 

 

 

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