In this CFD tutorial, we will present an illustration of a CFD trading case study to show you how CFD trading works and help you have a very clear idea about how this works. Lets say we have a cash float in our hand that is worth of $8000 and the CFD broker that we are working with is offering a 10:1 leverage. This means, our float is leveraged up to $80,000.
In this CFD trading example we will be going long and making a profit. Going long means you buy a CFD to open your position with the view of making a profit from the increase in price of the underlying security. You realise the profit by selling at a higher price than the price at which you bought your CFD.