jamiesays

Members

View Profile See their activity

Posts
1
Joined
August 21, 2020
Last visited
August 24, 2020

Recent Profile Visitors

The recent visitors block is disabled and is not being shown to other users.

jamiesays's Achievements

Reputation

What is the Max Loss on a Long Option on CFD?

jamiesays posted a topic in General Trading Strategy Discussion

If I go long a CFD on an option that is priced at 4.44 on a strike price of 2250 of the underlying (screenshot attached), could anyone confirm my logic is correct please: - the option price is 4.44 - if I bet 0.5 per point, this means the max I can lose = 4.44 * 0.5 * 100 [multiplier] = 222 I'm confusing myself because I'm taking a position on CFD rather than the actual option, I just want to be 100% sure my understanding of the nature of CFD is correct. Thanks very much for your help!
- August 21, 2020
- 1 reply

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Professional clients can lose more than they deposit. All trading involves risk.

The value of shares, ETFs and ETCs bought through a share dealing account, a stocks and shares ISA or a SIPP can fall as well as rise, which could mean getting back less than you originally put in. Past performance is no guarantee of future results.

CFD accounts provided by IG Markets Ltd, spread betting provided by IG Index Ltd and share dealing and stocks and shares ISA accounts provided by IG Trading and Investments Ltd. IG is a trading name of IG Markets Ltd (a company registered in England and Wales under number 04008957), IG Index Ltd (a company registered in England and Wales under number 01190902) and IG Trading and Investments Ltd (a company registered in England and Wales under number 11628764). Registered address at Cannon Bridge House, 25 Dowgate Hill, London EC4R 2YA. IG Markets Ltd (Register number 195355), IG Index Ltd (Register number 114059) and IG Trading and Investments Ltd (Register number 944492) are authorised and regulated by the Financial Conduct Authority.

The information on this site is not directed at residents of the United States, Belgium or any particular country outside the UK and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

IG Community
- Back
- Overview
- Forums
- Blogs
- IGTV On Demand
- Our Picks
- FAQ
- Guidelines
- Leaderboard
Events
All Activity
Search

Create New...

Recent Profile Visitors

jamiesays's Achievements

Reputation

What is the Max Loss on a Long Option on CFD?

Markets

IG services

Trading platforms

About Us

Contact us

IG Community