You buy 15 litecoin CFDs when it’s trading at $300. Our buy price is 305 and our sell price is 295.
Buying 15 litecoin CFDs at 305 is the equivalent of buying 15 litecoins for $305 each, giving you a total exposure of 15 x $305 = $4575.
Litecoin’s price rises 40 points to $340, and our price is now 345 to buy and 335 to sell. You close your position by selling 15 CFDs at 335.
335 – 305 = 30, meaning your position has moved 30 points. Your gross profit is 15 x 30, or $450.
If you’d shorted litecoin, you would have lost $750 (40 points plus ten points from the spread).2