Follow the price exposure
A contract for difference generally links the result to a change in a reference price between opening and closing. For a simple linear contract, quantity and the contract multiplier determine how much a price movement means in money. A long position benefits from a favorable rise before costs, while a short position benefits from a favorable fall. The exact product terms determine the reference, settlement and adjustments rather than the asset's name alone.
Use a balanced example
Suppose a hypothetical contract changes one currency unit in value for every one-point move per unit held. Ten units would change ten currency units for a one-point move, before costs. Work through the same movement in both directions and then add the spread, financing and conversion where applicable. This makes clear that leverage changes the capital initially required, while the price sensitivity still relates to the full position size.
Inspect margin and execution limits
Read how equity, required margin and closure thresholds are defined, and consider gaps that could move prices beyond an intended exit. An ordinary stop does not necessarily guarantee its trigger price. Provider risk, product restrictions and legal protections also depend on the actual agreement. FYLU's lesson is an educational calculation, not a live CFD specification: it establishes no leverage ratio, fee schedule, executable price or limit on the loss a contract could produce.