Identifier: C5T1L2 · Revision: 2026-10-26 · Classification: restricted

Decision and objectives

The practical task is to reconstruct spread, commission and financing from a multi-day statement. Make the decision reproducible: name the exposure, time horizon, cash requirement and comparison baseline before selecting a product.

Objectives: Reconstruct spread, commission and financing from a multi-day statement; Apply distribution and currency conversion entries with correct signs; Avoid subtracting a spread already embedded in fills twice.

Prerequisite: C5T1L1; completed Classes 1–4 and the Stock Market School foundation or Forex School foundation. Every example is hypothetical. Prices, dates, rates, fees, contract factors, policies and tax schedules are supplied teaching inputs, not current offers or legal parameters. No live account is needed.

Mechanics

A CFD cash statement can combine execution, daily financing, distributions, currency conversion and cash transfers. Separate position profit from external deposits. The ask-to-buy and bid-to-sell fills already embed a spread. A cost analysis may compare them with a mid, but it must not subtract that same spread again from fill-based profit.

A provider adjustment can debit or credit an economic distribution; a long credit may differ from the issuer's gross dividend. Financing can use prior close notional and multiple calendar days around weekends. Read the actual basis, currency and effective schedule.

Price and return drivers

Net contract-currency cash = fill-based price profit + credited adjustments − debited adjustments − commissions − funding. Convert the actual cash flow at the supplied executable FX rate and deduct any separate conversion charge. If cash flows occur on different dates, convert each at its own recorded rate instead of translating the final sum at an arbitrary closing reference.

Worked case

Hypothetical USD contract: buy 100 units at ask 50.10; close at bid 52.00. Gross fill-based profit USD 190. Mid at entry was 50.00, so the USD 10 entry half-spread is already in that result. Commission USD 4 each side totals USD 8. Funding uses supplied fixed USD 5,010 base, annual 7.2%, five calendar days actual/360: USD 5.01. Long distribution credit USD 20 gives net USD 196.99. Convert all at the assumed single settlement rate TRY 40/USD: TRY 7,879.60; separate TRY 40 conversion fee leaves TRY 7,839.60 before tax. For this case interim entries are retained in USD until conversion.

Adverse case

If close bid is 49.00, price result is −USD 110. With the same credit and costs, net −USD 103.01, or −TRY 4,120.40 before the TRY 40 fee, total −TRY 4,160.40. If funding is charged for eight rather than five days, funding becomes USD 8.016 and the favorable result declines by USD 3.006. A platform's headline price move can therefore differ materially from withdrawable cash.

Practical use

Ask the permitted provider for the contract size, financing observation time, calendar-day treatment, long/short rates, distribution formula and conversion markup. Reconcile the realized statement line by line. Currency conversion can occur immediately per posting or only on withdrawal; the method changes the base-currency result. No observed broker rate or live instrument liquidity is claimed here.

Use permitted domestic access routes and the actual instrument documents. Verify intermediary authority, investor eligibility, order/redemption terms, settlement, custody and executable size before implementation. Reconcile spread and commissions, funding, collateral, custody, product expenses, conversion and exit charges; an amount already embedded in a fill or fund unit price is not deducted again. A published mark or product description does not promise an executable price or liquidity.

Tax is excluded unless a numerical schedule is expressly supplied as hypothetical. For actual rules record income year, residence and individual/corporate status, instrument and acquisition/contract dates, taxable event and rule effective date. The GIB investment-income guide, checked 2026-10-26, covers 2025 individual income; its 2026 publication date alone cannot settle a 2026 liability.

Decision boundaries

Use CFD exposure only if the holding-period cost remains defensible against a matched future, direct holding or fund. A flat market can still incur material financing. Decline a comparison whose quoted spread, commissions or tax boundary cannot be reconciled with the supplied fills.

Practice and references

Exercise: hypothetical 50 units bought at USD 20.20 and closed at USD 21.00; commissions USD 6, funding USD 2 and distribution credit USD 5. Solution: fill profit USD 40; net USD 37. At TRY 30/USD, less TRY 10 conversion fee, cash is TRY 1,100 before tax. Do not subtract the USD 0.20 entry difference again.

Takeaway: Avoid subtracting a spread already embedded in fills twice with the cash dates, costs and remaining risks stated.

Product card: domestic-cfd. Formula: CFD statement net cash. Glossary: Distribution adjustment, Conversion markup. Next lesson: C5T1L3. Topic test.

Sources checked 2026-10-26:

Shared reference guide