A client Buys 1 lot (1,000 shares) of General Motors at the rate of 47.45 and at a later stage Sells the 1 lot of General Motors at the rate of 47.95.

In the above situation, the client has made a profit of $500 as he bought the CFD at a lower price and sold it at a higher price.

Calculation Model:

(Selling price - Buying price) x Contract size x No. of lots

= (47.95 - 47.45) x 1000 x 1 ( lot )

= 0.50 x 1000 x 1

= $500