If you short sold $10,000 of Microsoft share CFDs, under leverage ratio 5:1 it would require an initial margin of $2,000. With a total deposit of $20,000 in your trading account, what would be your maximum potential loss on this trade?

You invest $500 to buy $1,000 worth of share CFDs on margin. When the value of the share drops to $500, you then close the position. Approximately how much of your original $500 investment are you left with in the end?

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Lets calculate the maximum potential loss for the short position in Microsoft share CFDs 1 You short ... View the full answer