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A trading example on non fixed risk account


After completing your market research, you have decided that you wish to trade Ford, the US motor manufacturer. You believe that the Ford share price is going to go down, therefore you decide to short sell Ford by selling 1,000 Ford Share CFDs.


If you have a Fixed Risk Account, you could set your guaranteed stop level above the current price of 1260 cents. You could, for example, set the guaranteed stop level at 10%, setting the guaranteed stop level at 1386 cents, 126 cents above the current trade price*.


To open the position you are required to deposit a minimum of £834 (equivalent of $1,260) as initial margin. Price to sell Ford


Number of share CFDs sold Value of position Stamp Duty Commission


Initial margin required (10%)


1260 cents 1,000


(1,000 x 12.60) 0


£20 $1,260 (£834)


As you wish to hold this position overnight (and possibly longer) you will be debited or credited with financing. Financing is calculated on 100% of the value of the position. You will be credited financing at the official overnight LIBOR (London Interbank Offered Rate) rate (3% in this example) – 2.5%. * There is a minimum distance of up to 5% at which a GSO must be set.


To find out more natweststockbrokers.com/cfdtrading 0845 350 0100 $12,600 (£8,337)


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