Below is a calculator which illustrates the workings of a simple long and short CFD trade.
Spend 10 minutes changing some of the key figures, especially the closing price and the length of time the contract is held open, and you will see how the bottom line profit/loss figure changes.
Note that the calculator does not take account of variation margin. If your position deteriorates day-by-day, your broker will require you to post extra margin to your account to cover the losses.
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