A previous CFD select trade suggestion

Prerequisite knowledge for a CFD (contract for difference) trade:
One CFD equals one share.
FGL is Fosters Group Ltd

Leverage: It depends on the individual CFD Provider. Working with a twenty-to-one leverage, that means for every dollar you place as margin, you can 'buy' twenty dollars of a particular stock. Assuming FGL was trading at $5.60 and you wanted to buy 4,285 of Fosters shares, that would normally cost $23,996. If a subscriber wanted to trade 4,285 FGL CFDs on a twenty to one leverage, that is a five percent deposit,it would cost $1,200 to establish the CFD trade position.

This can be best shown by one of our past FGL CFD select trade suggestions.

On the 30th August 2005, FGL was trading at $5.60. We sent an SMS text message and email to our CFD Select subscribers on August 30th stating,

�NEW TRADE - We suggest buying FGL CFD at $5.60. Stop loss; $5.43. Please log on to for analysis�.

On our web site was the fundamental and techncial analysis behind the CFD trade suggestion and a supporting chart. Click here to see the document.

The subscriber would phone their CFD Provider or go on-line and buy the 4,285 FGL CFDs

On the 1st September, 2005 FGL share price was $5.77, valuing 4,285 FGL shares at $24,724. We sent an SMS text message and email to our CFD Select subscribers on the 1st September stating,

�EXIT - FGL CFD. We suggest exiting (selling) FGL CFD at $5.77. Please log on for analysis�.

The subscriber would phone their CFD Provider or go on-line and sell the 4,285 FGL CFDs

Upon exiting at $5.77, the profit would be $24,724 minus $23,996 equals $728. (Alternatively, $5.77 minus $5.60 = $0.17. So, $0.17 x 4,285 shares i.e. CFD�s = $728)

On the original outlay of $1,200, a gain of $728 is a 60.7% return in 3 trading days. In other words, it's a 60.7% profit, based on a 3% share move.

NOTE: The cost of brokerage and the interest rate component on the borrowed amount differs from CFD Provider to CFD Provider. As such, we do not take into account those variables. In addition, the leverage levels for individual stocks can vary amongst the providers. We assume it is possible to obtain twenty-to-one leverage from at least one of the providers on all stocks that we provide suggestion for.