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CFDs - Newbie Trap? Advice & Flaming most welcome!

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