CFD stands for Contracts For Difference. They are usually OTC contracts (over-the-counter). In other words, it is a contract between you and your broker only. If you open a position in a CFD contract with your broker you need to close this position with your broker.
Some other characteristics are:
They are not deliverable, so you are not going to get actual euros to put them in your wallet when you trade EUR/USD or gold when you trade XAU/USD (XAU is a symbol for gold) or stocks from exchanges like NASDAQ, NYSE or FTSE.
Thus, these contracts do not imply that you can get the underlying assets. The only reason you trade them is to gain money from the price differences or maybe lose it. Don’t stress, we still have the obligation to give you all the profits of your gaining trades.
Sometimes, people trade not only to profit from price differences but also to own shares or gold. With CFDs you don’t own them, you are just making a prediction on the price direction.
((1.11000 - 1.10500)*1000)*1 since your account is USD and the Quote currency is also USD)
If you make the calculation, you will find out you can limit your losses to 5 USD.
If you were selling EUR/USD, you would have lost 5 USD.
If you were using leverage 1:30 instead of 1:10 with the same margin of 100USD, the trade volume in your formula would be 3,000 instead of 1,000. In that case you would have gained 15 USD if you were buying the EUR/USD pair.