CFD trading and potential losses

M

mav120

Hello,

I am trying to understand losses on CFD trading for practice, can someone please shine some light on what my maximum loss would be if I shorted $10,000 of a CFD share using 1:5 (20%) leverage? I am starting with a $2000 initial deposit.

Thank you
 
Hey Mav,

Odds are against you.

My old FB wallpaper, used it to remind myself :

82386834_2938980072808446_6132747891736838144_n.jpg


Based on the question , - you're beginner, thus check the link bellow, read the whole thread & forget about CFD's, leverage & shorting for the next ~2 years :

https://www.elitetrader.com/et/thre...bs-who-wants-to-be-a-full-time-trader.357710/
 
mav120 said:
Hello,

I am trying to understand losses on CFD trading for practice, can someone please shine some light on what my maximum loss would be if I shorted $10,000 of a CFD share using 1:5 (20%) leverage? I am starting with a $2000 initial deposit.

Thank you
More...

Depends where you are located. If you are in Europe, your loss is capped at your initial deposit. It might be different in other markets.
 
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