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 ?

  • 1
    My Italian isn't great but it looks like the limit price is 20 rather than either a bid or ask price.
    – MD-Tech
    Aug 30 '17 at 10:08

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".

  • ok but what dose is the margin of the 20% ?
    – T-student
    Aug 30 '17 at 14:28
  • @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.
    – D Stanley
    Aug 30 '17 at 15:05

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