require some basis intro to shares trading please

[Guest sharmadeepak87]

hello dear friends,

I have just started trading in shares but there seems some basis understanding that I am lacking / failing to understand.

I had recently bought shares of Capita PLC at 167.55, and I closed by trade at 170.90 for a total of 500 shares.

however after closing the trade, I have made just GBP 16.25

basis my trade, I should have made [500 x (170.90-167.55)] = 1675

can someone please guide me how this profit is calculated as I am really confused as all trades I have made, I have paid more commissions than my profit.

 

Thanks

 

[Ludwik Chodzko-Zajko IG]

UK shares are price in GBX (pence), so you're out by a factor of 100. This correction to your calculation would result in  [500 x (1.7090-1.6755)] = £16.75. 

Market spread at the time was approximately 0.2, so closing at the bid (sell) price of 1.7080 gives you £16.25.

Hope that makes sense.

 

[Guest sharmadeepak87]

@JamesIG can you please assist to the above query ?

[JamesIG]

Thanks @Ludwik Chodzko-Zajko IG - please take this answer as accurate. All IG staff will either have 'IG' in their name, or in the 'IG Staff' member group (just under their picture as below). Thanks. 

[Guest sharmadeepak87]

@JamesIG @Ludwik Chodzko-Zajko IG Thanks for the clarification, much appreciated.