[Basic question about options trading]

Thanks very much guys. You've cleared that up for me.

[Basic question about options trading]

Hi,

Thanks for the response. Attached is a pic. As can be seen, this call is my only open position currently.

 

[Basic question about options trading]

Anyone? Please let me know if my question is unclear.

Thanks

[Basic question about options trading]

Hi,

I'm using a demo CFD account and bought a call option on GBP/USD for 56.5. It was my understanding that this is equivalent to the option premium and that, as a buyer, my losses would be limited to this amount. However, I've seen the loss on this trade exceed 56.5 a number of times.

I am clearly misunderstanding something. Is it that CFDs don't replicate this aspect of option contracts?

Thanks very much in advance.