# CFD Commodities Calculator

The Calculator will populate the field  with some dummy data, you can change it according to your  needs

##### CFD Calculator (Commodities)

Margin Leverage (in %)

TOM-Next Rate

This CFD Calculator will help you Estimate & Calculate  CFD Commodities Profit and Loss.

## What is CFD Commodities Trading

CFD full definition  is Contract of Difference

CFD Commodities Is a Contract between the broker and her clients  , to exchange value  difference on Commodities  fluctuation  tie  to the  contract opens and closes trading  Intervals.

During the Process , the Clients nor the Broker  does not hold or own any Underlying Commodities Assets

1.  You would like to bet against (Short)  or  ride (Long ) with the  Commodities Trend.
2. Higher Leverage. Higher Profit .
4. CFD Commodities  does not has any Day Trading Cap Entry Requirements , you  can enter any  position by just providing Sufficient  Margin   to your Account.

1. High Risks , Higher Losses

## What you need to Consider  when  trading CFD Commodities

1. Do your Technical  Indices Research
3. Be Sure you have sufficient Margin to cover your position when things go against your Odds.

## What  are the Cost involves in  CFD Commodities Trading

For Example  : Current gold Price is at  USD\$ 1892.50

You would wanna  enter a Position .

CFD Broker  will charge you a Buy  Spread  eg: USD\$0.34  for you to buy into the Position

For Example : Current gold Price is at  USD\$ 1892.50

You would wanna  close your Position .

CFD Broker  will charge you a Sell  Spread  eg: USD\$0.34  for you  to exit Position

Your Close Position =  Current Open market Value   –  Broker  Sell Spread= \$1892.50 – \$0.34= \$1892.16

(B) Borrowing and Funding Fee

Funding can be divided into Intraday funding or Overnight funding

(tom-next rate + 0.5% pa admin fee) x deal size

## Overnight Funding

(P3 – P2) ÷ (T2 – T1)

T1 = expiry date of the previous front future
T2 = expiry date of the front future
P2 = price of front future
P3 = price of next future

Basis =(P3 – P2) ÷ (T2 – T1)
Brokerage charge = P3 x Brokerage Commission % ÷ 365

Adjustment = Value Per Point x (Basis – Brokerage charge)

CFD Broker will  charge Currency Exchanges Admin Fee

(D) Margin

Total Margin = Number Of Contracts x Value Per Point x Commodities Prices x Margin