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The iFOREX investment platform automatically calculates all necessary equations, but informed traders understand the detail necessary to carry out successful strategies.

### As an example, let’s look at crude oil

Opening a deal size of 380 contracts of oil means that you are buying 380 x oil contracts.

#### What you will do on the platform?

Choose the instrument WTI oil 380 contracts Buy / Sell

With an investment of \$200, you assume that the price of oil is going to strengthen, and you choose to buy oil.

Let’s say that in this example, the price of a single oil contract is \$52.

*You don’t have to actually own these contracts in order to sell them later – in a CFD investment you can sell an instrument without actually owning it because you are, in fact, investing in the instrument’s price.

Example 1:

A click on the “BUY” button will allow you to purchase 380 x oil contracts, using leverage of approx. 100:1.

380 x 52 (ask price) = \$19,760

REMEMBER: One of the main benefits of CFDs is that your investment is leveraged (this is the benefit that enables you to open large deals with a relatively small investment).

For crude oil, the maximum leverage is: 200.

This allows you to maximize your potential profits.

#### To demonstrate the calculations we will continue to use the oil example

Let’s say the price of the oil moves up by 20 points from 52 to 52.20.

380 x 52 (ask price) = \$19,760 *
380 x 52.20 (bid price) = \$19,836 *
19,836 – 19,760 = 76 => The difference is worth \$76

Example 2:

A click on the “BUY” button will allow you to purchase 760 x oil contracts, using leverage of approx. 200:1.

760 x 52 (ask price) = \$39,520 *
760 x 52.20 (bid price) = \$39,672 *
\$39,672 – \$39,520 = 152 => The difference is worth \$152

This calculation will always give you the value of the difference in the quote currency (in this case, US Dollar).

REMEMBER: to succeed as an investor, it’s important to have the ability of calculating risks and potential profits. It is always advisable to be aware of these calculations before opening a deal.

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