Hello everybody,

I have a doubt on how it works the currency conversion charge of 0.5% for the CFD.

Let us make an example.

I buy 1,000 of a security X in USD, while my account is in EUR. The leverage is 1:10.

Date 01/01/2020. I buy the security X:

- USD/EUR: 0.85
- Buy @ 15.000 USD per share
- Quantity: 1,000
- Total amount bought: 1,000 x 15.000 USD x ?
- Margin: 10% x 1,000 x 15.000 USD x ?
- SWAP: -0.001 x 1,000 x ?

Possible scenarios for the variable ?:

- ? = 0.85
- ? = 0.85 x (1+0.5%)
- ? = 0.85 x (1-0.5%)

After 15 days I sell the security X. Thus:

- USD/EUR = 0.90
- Sell @ 16.000 USD per share
- Quantity: 10,000
- Total amount sold: 1,000 x 16.000 USD x ?

Possible scenarios for the variable ?:

- ? = 0.90
- ? = 0.90 x (1+0.5%)
- ? = 0.90 x (1-0.5%)

Finally:

PROFIT / LOSS = Total amount bought â€“ Total amount sold â€“ SWAP x days

Anyone from Trading 212 can clarify how to calculate the value for â€ś?â€ť when buying and when selling in the above example?

Thank you.

Ado