As and when the buyer chooses to sell the product, he then does so at a closing price. This also marks the end of the said agreement or contract between both parties. Whatever gains or losses incurred are calculated based on the difference of the product’s value from commencement until closure of agreement. The value of the product is based on its current market value coupled with speculations as it rides through the market waves.
However, this business of CFD trading is not as simple as it sounds. Other factors to be taken into account include ancillary charges in terms of commissions, financing and account management. Since it basically revolves around market speculation, one must know what he is getting into. If the buyer commits to a contract whereby he thinks the price of the product of interest will move in a certain direction, he then must ensure the contract is one which will reap the expected benefits. In the event the price moves in the different direction, the buyer is required to pay the seller. To add salt to the wound, incidental charges continue to skyrocket if the buyer is not prepared to make informed decisions.