i would like to understand the following picture Example of trading
if i place this kind of position what dose mean The price is 20,00 ? when the Price of the cfd is 164,00 ?
Can you help me to understand this ?
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1My Italian isn't great but it looks like the limit price is 20 rather than either a bid or ask price.– MD-TechCommented Aug 30, 2017 at 10:08
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1 Answer
The price is 20,00 ?
It's not telling you the price is 20 - it's asking if you want to create a limit order at 20, meaning you only buy when the price drops below 20.
The price you'd actually pay at that moment is the ask price - which I'm assuming is the 164,91 (since the ask is always larger than the bid). I do not speak Italian but Denaro and Lettera translate to "money" and "letter" so it may mean something else or it may be localized terms for "bid" and "ask".
answered Aug 30, 2017 at 13:28
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@T-student it means you pay only 20% of the price upfront. When you sell you pay/receive the difference between the sales price and the original price, meaning you might get some or all of your margin back. Commented Aug 30, 2017 at 15:05