Long Trading Example

‘Going long’ is simply buying a CFD position to profit from a share price increase. The difference between the entry price and the exit price is the profit or loss that is made on the trade.

The example below compares the Return on Investment (ROI)on identical CFD and share trades. This comparison illustrates the similarities between CFDs and shares while highlighting the fact that CFDs have the ability to greatly increase ROI.



*Financing is calculated at the closing market price of $35.50.

Note: If the price of BHP had fallen by $0.50 Amy would have incurred a loss of $538.66.  

Commission, interest, platform fees, dividends, variation margin and other fees and charges may apply to financial products or services available from First Prudential Markets.

The information in this website has been prepared without taking into account your personal objectives, financial situation or needs. You should consider the information in light of your objectives, financial situation and needs before making any decision about whether to acquire or dispose of any financial product. A Product Disclosure Statement for each of the financial products available from First Prudential Markets can be obtained either from this website or on request from our offices and should be considered before entering into transactions with us. Derivatives can be risky; losses can exceed your initial deposit. First Prudential Markets recommends that you seek independent advice from an appropriately qualified person before deciding to invest in or dispose of a derivative. First Prudential Markets Pty Ltd (ABN 16 112 600 281, AFS Licence No. 286354).