Australian Exchange official website: Where do the profits and losses of CFDs come from?

Aohui official website: The profit and loss of a CFD come from the difference between the entry and exit price of the contract. Suppose you think the price of an asset will rise, you can choose to go long (buy) and profit when the price of the asset rises; conversely, if you think the price will fall, you can choose to go short (sell) and profit when the price falls.

When your predictions of price changes are correct, natural trades make profits, and vice versa, there are losses. When you make a profit,brokerOr the "seller" will compensate according to the CFD; otherwise, in the case of a loss, the trader or "buyer" will compensate.

transactionContract for DifferenceThe profit and loss calculation method is simple: simply multiply the difference between the entry and closing prices by the number of CFDs.

CFDs do not have an expiration date, so if you want position squaring, you have to place an order in the opposite direction to perform position squaring. Note that if your trade does not have position squaring for a long time, you must pay an overnight fee - this is why people say that CFDs are not suitable for long-term trading strategies.