CFDs - Newbie Trap? Advice & Flaming most welcome!

[RADO]

The $500 his referring to is the margin per contract which is in US dollars so really its around $512.45 AUD per contract.

 

[skc]

The $500 his referring to is the margin per contract which is in US dollars so really its around $512.45 AUD per contract.

That's the margin. It's $10 per tick so it has $150k face value given that the DJIA is 15,000 points.

If DJIA is down 250 pts he's down $2500, or 50% of his starting capital.

If DJIA is down 500 pts over the week... the fat lady sings.

 

[RADO]

That's the margin. It's $10 per tick so it has $150k face value given that the DJIA is 15,000 points.

If DJIA is down 250 pts he's down $2500, or 50% of his starting capital.

If DJIA is down 500 pts over the week... the fat lady sings.

Yup.