Since we offer a leverage of up to 400 (where permitted by local regulations), you can now open trades of up to $200,000 (see below):

Your investment |
Leverage |
Your trading power |

$500 |
X 400 |
$200,000 |

Now let's say that one CFD on gold is currently trading at $1,000. Your intuition tells you that gold prices will move up, and therefore you’ve decided to buy 100 CFDs on Gold.

**100 x 1,000 = $100,000**

After a while you look at your trading account and see that you were right: the price of the CFD on Gold has gone up and is now trading at $1,020 !

It means that your 100 CFDs are worth now:

**100 x 1,020 = $102,000**

You decide to close your trade.

Your total profit from this trade is:

**102,000 – 100,000 = $2,000**

A $2,000 profit for a $500 investment… Not bad right?

Note that the same logic of calculation applies to all the instruments.

*In this example, we did not include the potential rollover, overnight financing and spread in the calculations.