Trading examples I Cryptocurrency I Learn| CMC Markets

CFD trading example: Sell Ethereum/USD

You are interested in trading ethereum and decide to open a short CFD trade by selling ethereum against the US dollar (Ethereum/USD).

The current sell/buy quote is 929 / 949.

You believe the value of ethereum will fall against the US dollar, and therefore open a sell CFD position, selling 5 units to open at 929.

This is the equivalent of selling 5 ether tokens, so you will gain or lose $5 for every $1 change in the value of ethereum.

Profitable tradeThe value of ethereum falls against the US dollar, and the new price quote is 750 / 770. You decide to take your profit, and buy 5 units to close your position at 770.

The price has moved 159 points in your favour, so your profit on the trade is therefore$795 (159 X $5).

Losing tradeThe value of ethereum rises against the US dollar and the new price quote is 1068 / 1088. You decide to close your position and therefore buy 5 units at 1088 to prevent any further losses.

The price has moved 159 points against you and your loss on the trade is therefore$795 (159 X $5).

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Trading examples I Cryptocurrency I Learn| CMC Markets