Take advantage of market movements by trading Forex and CFDs. Trading Forex and/or CFDs enables you to have exposure to the price movements without taking physical ownership of the underlying security. Any difference in the price between the time you buy the underlying security and the time you sell is settled in cash. The difference is your profit or loss.
Trading Foreign Currency Example:
USD/JPY is trading at (sell/buy) 109.47/109.50. You believe that the USD is trending downward, so you will sell the pair at 109.47.Opening Position:
Closing Position with a Profit:
After two days the USD/JPY buy price decreases 100 pips to 108.47/108.50 at which point you decide to buy the currency pair back.
Closing Position with a Loss:
If the buy price had moved in the opposite direction you would have realized a gross loss.
Trading Indices Example:
FX Solutions quotes the US SP 500 at 1270.5/1271.1 and you believe the US SP 500 will rise. Below is an example of how your investment in CFD Indices may look:Opening Position:
Closing Position with a Profit:
After two days, the US SP 500 price rises to 1275.6 at which point you decide to sell the underlying contracts.
Closing Position with a Loss:
If the sell price had moved in the opposite direction you would have realized a gross loss.
Trading Commodities Example:
FX Solutions quotes gold at 829.60/830.10 and you believe that gold will rise. Below is an example of how your investment in CFD commodities may look:Opening Position:
Closing Position with a Profit:
After two days, gold price rises to 835.70 at which point you decide to sell the underlying contracts.
Closing Position with a Loss:
If the sell price had moved in the opposite direction you would have realized a gross loss.
Source - http://www.fxsol.co.uk/learning-tools/trading-examples.asp
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