As with all our Rates and Bonds, our Bund contract is an OTC product and is quoted on a forward basis with a set expiry date at which the position will automatically close. There is no commission to pay: all our charges are in the dealing spread.
Opening the position
You believe the price of the Bund will rise. It’s September 2011 and you check the real-time price for our German Bund online. The price is showing 13550/13552 and you decide to buy two contracts at 13552.
One contract is the equivalent of E10 per point.
A few days later, the price of the Bund rises and we are now making 13840/13842. You close your position by selling three contracts at 13840.
Your profit on the trade is calculated as follows:
Profit
| Closing level | 13840 |
| Opening level | 13552 |
| Difference | 288 |
Profit: 288 points x 2 contracts x E10 per point = 5,760