# CFD example - how it works

Just as trading in shares or funds, your profits when you trade CFDs are determined by the difference between the prices you buy and sell at. In the example below we show exactly how it works in a trade in the fictitious company North Sea Oil Plc (NSO).

### To make the deal

North Sea Oil Plc traded at 150/150,50 kroner.You think the price will rise, so you decide to purchase 100 CFDs at 150,50 kr.

100 CFDs at 150.50 kroner gives you a position of 100 x 150,50 kr. = 15 050 kroner worth.

### Trading with leverage

When you buy a share CFD with us, you have a margin of 10 percent of the value of the position. Therefore, 1 505 kroner at first reserved on your account.

15,050 kr. x 10 percent = 1,505 kr

Be aware that if the price of the stock drops more than 10 percent, you can lose more than the 1,505 kr. which you invested.

### To calculate your brokerage

When you buy a share CFD with us, you pay a brokerage fee of 0.08 percent of the value of your trade. To figure out how much commission you pay, you simply take brokerage and multiplying it by the value of the position.

In this example, the brokerage:

15 050 kr x 0.0008 percent = 12.04 kr.

### You close your position

You now have a CFD position at 100 kr., providing 15,050 kr. to your account.

Later that day you will see that the price of NSO has risen to 156/156, 50 kr. This means that you have been right in your belief that the share price would rise, and you decide to close your position and sell for 156 kroner .

### Your profit or loss

You originally bought your NSO to 150.50 kr., and you now sells for 156 kr., which means that the price rose by 5.50 kr.

5.50 kr. x 100 CFDs = 550 dollars in profit.

You will also pay 0.08 percent in commissions when you close your position, which is 12.48 kr.

### Your profit after brokerage

After deducting brokerage is your total profit 525 kroner.

If your CFD instead fell by 5.50 kr., you would have lost 550 kroner plus brokerage fees.