Trade at the market price on the platform with your commission built into the price. You pay a margin on the trade which is a percentage of the notional value of the trade.

Opening the position

On the morning of 6 August 2009 you decide that Anglo American looks like a good buy and you decide to open a position. The current spread on the GT platform is 26966.49/27257.61. This price includes the commission on the trade in this example of 50bps. You decide to buy 1000 shares at the offer price of 27257.61

As CFDs are leveraged products you are not required to put up the full notional value of the trade but only a portion, in this case 14%. The initial margin on the position which is taken from your trust account is going to be R38,160.66 (1000 shares x R272.5761share x 14%)

Closing the position

It is near the end of the day and Anglo American has risen sharply to where the bid and offer are now at 28407.25/28722.90. You decide you want to take profit on the position and close out the trade at the bid price of 28407.25 The profit on your trade is calculated as follows:

Profit on trade

Closing level R284.0725
Opening level R272.5761
Difference R11.4964

Profit on trade: R11.4964 x 1,000 = R11,496.40

As the commission is already built into the price you trade at there are no more costs involved on intra-day trades.

Of course, had the market moved in the opposite direction, you would have made a loss that may have exceeded your initial deposit.

Opening the position

On 6 August 2009 you decide that Anglo American is looking discounted and that you want to take a position to buy (go long) a position on Anglo American. The current spread on the GT platform is 26966.49/27257.61. This price includes the commission on the trade in this example of 50bps. You decide to buy 1000 shares at the offer price of 27257.61

As CFDs are leveraged products you are not required to put up the full notional value of the trade but only a portion, in this case 14%. The initial margin on the position, which is taken from your trust account, is going to be R38,160.66 (1000 shares x R272.5761share x 14%). The market price rises throughout the day, and you believe it will continue tomorrow.  You decide to hold your position overnight.

Interest adjustments

Interest adjustments are calculated daily by applying the applicable interest rate to the daily closing value of the position. The annual interest adjustment for a Rand denominated share such as Anglo American is found by adding the latest overnight SAFEY rate (South African Rand Overnight Deposit Rate) to the financing fee.

On 6 August 2009, SAFEY is at 7.1700%, so the annual applicable interest rate on your Anglo American position, assuming a financing fee of 2.5%, would be 9.67%:

SAFEY: 7.17%
Fee: - 2.5% 
Total: 9.67%

The closing price on 6 August 2009 is R270.50, which gives you a closing value of R270,500. The annual interest on R270,500 would be R26,157.35, which creates a daily interest debit of R71.66 (R270,500 x 9.67% / 365).

Closing price: R270,500
Total Interest Adjustment: x 9.67%
Annual Interest: /365
Daily Interest: R71.66

Dividend adjustments

When you hold a long position and the share goes ex-dividend, you are eligible to receive the dividend on pay date. The pay date is generally 2 weeks after ex-date but this does vary from company to company. If there was a dividend to be paid on Anglo American where the share goes ex on the 6 August and you are holding the shares overnight, then you are due the dividend on pay date. If the dividend was R10, the amount of the net dividend due would be R10,000 (1,000 shares x R10 = R10,000)

Current contract size: 1,000 shares
Dividend Adjustment: X R10
Net Dividend Due: R10,000

Mark to Market Process

On a daily basis profit and loss is realised on your account through mark to market. On the close of business 6 August, Anglo American closes at R270.50. The mark to market takes into account the loss made on the position for the day along with the interest on the position for carrying it overnight.
M2M loss
Closing Level: R270.50
Opening Level: R272.5761
Difference: R2.0761
Loss on Trade: R2,076.10
Interest adjustment: R71.66
Overall loss: - R2,147.76

Closing the position

The following day, Anglo American rises to 28407.25/28722.90 and you decide to take profit on the trade at the bid price of 28407.25. As the previous day’s losses have already been reflected in your trust account, the trade is then mark to market at the close of business, reflecting the profit for the day. 124.55/124.65. You decide to close your position and reduce your losses before the market falls any further. Your profit for the trade on the day is calculated as follows:
Profit on trade
Closing level: R284.0725
Opening level: R270.50
Difference: R13.5725
Loss on trade: R13.5725 x 1,000 = R13,572.50

Note: As the position has not been held overnight for the second day, there is no funding adjustment needed.

Calculating the overall result

The overall loss on the trade is the total costs, profits and losses on the account, based on the mark to market process

Opening the position

It is 6 August 2009 and you decide that Anglo American is looking expensive and that you want to take a position to sell. The current spread on the GT platform is 26966.49/27257.61. This price includes the commission on the trade in this example of 50bps. You decide to sell 1000 shares at the bid price of 26966.49

As CFDs are leveraged products you are not required to put up the full notional value of the trade but only a portion, in this case 14%. The initial margin on the position which is taken from your trust account is going to be R37,753.09 (1000 shares x R269.6649share x 14%). The market price falls throughout the day, and you believe it will continue tomorrow.  You decide to hold your position overnight.

Interest adjustments

Interest adjustments are calculated daily, by applying the applicable interest rate to the daily closing value of the position. The annual interest adjustment for a Rand denominated share such as Anglo American is found by adding the latest overnight SAFEY rate (South African Rand Overnight Deposit Rate) to the financing fee.

On 6 August 2009, SAFEY is at 7.1700%, so the annual applicable interest rate on your Anglo American position, assuming a financing fee of -2.5%, would be 4.67%:
SAFEY:       7.17%
Fee:    -  2.5% 
Total:      4.67%

The closing price on 6 August 2009 is R265.50, which gives you a closing value of R265,500. The annual interest on R265,500 would be R12,398.85, which creates a daily interest credit of R33.97 (265,500 x 4.67% / 365).

Closing price: R265,500
Total Interest Adjustment: x 4.67%
Annual Interest: /365
Daily Interest: R33.97

Dividend adjustments

When you hold a short position and the share goes ex-dividend, you are obliged to pay the dividend on pay date. The pay date is generally 2 weeks after ex-date but this does vary from company to company. If there was a dividend to be paid on Anglo American where the share goes ex on 6 August and you are holding the shares overnight, then you must pay the dividend on pay date. If the dividend was R10 the amount of the net dividend to be paid would be R10,000 (1,000 shares x R10 = R10,000)

Current contract size: 1,000 shares
Dividend Adjustment: X R10
Net Dividend Due: R10,000

Mark to Market Process

On a daily basis profit and loss is realised on your account through mark to market. On the close of business 6 August, Anglo American closes at R265.5. The mark to market takes into account the profit made on the position for the day along with the interest on the position for carrying it overnight.
M2M loss
Closing Level: R265.5
Opening Level: R269.6649
Difference: R4.1649
Profit on Trade: R4,164.90
Interest credit: R33.97
Overall profit: R4,198.87

Closing the position

The following day Anglo American rises to 27407.25/27722.90 and you decide that it looks as if it wants to continue to rise and so realise a loss. You trade at the offer price of 27722.90. As the previous days profits have already been reflected in your trust account the trade is then mark to market at the close of business, reflecting the profit for the day.

Your loss for the trade on the day is calculated as follows:
Profit on trade
Closing level: R277.2290
Opening level: R265.50
Difference: R11.7290
Loss on trade: R11.729 x 1,000: R11,729

Note: As the position has not been held overnight for the second day there is no funding adjustment needed.

Calculating the overall result

The overall loss on the trade is the total costs, profits and losses on the account based on the mark to market process