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CFD help please

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Hi. Can someone please help me. Say I buy 1000 AGLcfd contracts with underlying at 290. what will my breakeven point be? Sorry if this is a silly question. Thanks
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10 REPLIES 10
doomsdayza
Super Contributor
Rough quick calc (correct me if wrong) for a 2 day trade:
Initial margin (1000 @ 45) = 45,000.00
Exposure = 290,000.00
Brokerage in and out @ 57.00 = 114.00
Spread in and out @ 0.2% = 1,160.00
Interest on Long exposure @ 9.5% for 2 days = 150.96
Interest on initial margin @ 6.5% for 2 days = -16.03
Total exposure (incl costs) therefore = 291,408.93
Therefore break even price over 2 days is 291.41 or 0.49% on 29000 entry price
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SimonPB
Valued Contributor
you forgot the 0.35% common each side ..
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kokkie
Contributor
Simon, Just checking my calcs: Break even 292.30 more or less?
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doomsdayza
Super Contributor
market maker spread of 0.20% isn't the comm? then i suggest the "cost structure" page on the site gets updated, else it's quite misleading. i see 0.35% on equities, nothing is mentioned about 0.35% on CFDs.
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SimonPB
Valued Contributor
well the 0.35% on the equity is the equity we have to buy to do the hedge ..
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doomsdayza
Super Contributor
thks Simon. it could be more clearly stated under the CFD section (not to mention the CFD brochure under Help and Education which makes no mention of the fact that you get rushed another 0.35% on top of the 0.2% MM spread because of the trade in the underlying equity) and not the equity section of the cost structure page that over and above the MM spread you're also paying the brokerage on the underlying equity. or just simply state a total MM spread of 0.2% + 0.35% is charged on CFDs. bit of a lack of transparency on the product.
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SimonPB
Valued Contributor
I totally disagree on the lack of transparency .. you're the first person to comment they they haven't understood it .. an I have no idea what you're talking about re the 0.2%, unless it is the comm on a same day sale, wich is 0.2% rather then 0.35% ..
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doomsdayza
Super Contributor
then your cost structure is outdated: CFD Brokerage R 50 flat fee Market Maker Spread Rate 0.20% Intraday Discount Spread Rate 0.15% nowhere do i see anything about 0.35%. are we confusing the 0.35% and 0.2%?
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SimonPB
Valued Contributor
you refering to the CFD brochure on this website ?? page 3 and 10 very clearly state the 0.35% ..
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doomsdayza
Super Contributor
if i multiply the live offer price on my short by 1.002 i get my CFD's mtm price. all good though, think we're just not getting eachother or i'm just plain tired and obtuse.
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