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Understanding CFD prices HELP

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keng
Contributor
Can anyone direct me to some literature on how Underlying Prices work, I am finding it very difficult to understand. I have been buying and selling CFD's for a few months. Let me use an example of Sanlam which I purchased for 4506 the current bid price at close on Tuesday is 4599. After hours I decided to sell these and I selected Limit-Underlying Price and entered 4599. The foot note on the trade page tells me this is the price that I wish to trade at. Now the confusion If I look at the Order Status page I see Your Price = 4583 Your Underlying price = 4599 Current Underlying price = 4570 (which is the highest bid price). Where on earth does Your price come from? Why the 16 cent difference? Does "Your Price" reflect the Nett amount I would receive? I have cancelled my sell order but would like to know at what price the Sanlam CFD would have triggered.
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2 REPLIES 2
sponono
Super Contributor
4599-4583: the difference is 0.35% OST's commission. You would have matched at 4599 and paid a comission at 0.35% giving you a net price of 4583
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keng
Contributor
Many thanks sponono. So in future I'll decide my net price and divide that by .9965 for the gross underlying.
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