Contracts for Difference (CFDs) allow traders to speculate on price movements of global financial instruments such as equity indices, commodities, and energy products without owning the underlying asset.
CFDs are traded on margin and enable traders to take advantage of both rising and falling markets, providing flexibility and diversified market exposure through a single trading platform.
CFDs are agreements between a trader and a CFD provider to exchange the difference in price of an asset between the opening and closing of a position. CFDs offer access to markets that may otherwise be less accessible to retail traders, including indices, commodities, and futures-based instruments.
CFDs typically do not involve commission, stamp duty, or physical delivery, making them an alternative trading method for diversified portfolios.
CFDs allow traders to open short positions, enabling them to potentially benefit from declining market prices. This functionality can be used as a hedging tool to offset short-term risk exposure in an existing portfolio.
For example, traders holding long-term equity positions may use index CFDs to mitigate short-term downside risk during volatile market conditions.
Effective date subject to change based on market conditions
| Symbol | Currency | Trading Hours (GMT+2) | Break Time (GMT+2) | Target Spread | Min Trade (Lots) | Max Trade (Lots) | Step | Contract Size | Min Tick Value |
|---|---|---|---|---|---|---|---|---|---|
| A50 | USD | 00:00 – 19:30 (Mon–Fri) | 07:30–08:00, 19:30–00:00 | Indicative | 0.1 | 10 | 0.1 | 10 | 1 USD |
| AUS200 | AUD | 22:00 – 20:00 (Sun–Fri) | 04:30–05:10, 20:00–22:00 | Indicative | 0.1 | 10 | 0.05 | 20 | 2 AUD |
| DE40 | EUR | 00:00 – 20:00 (Mon–Fri) | 20:00–00:00 | Indicative | 0.1 | 10 | 0.05 | 20 | 0.2 EUR |
| US500 | USD | 22:00 – 21:00 (Sun–Fri) | 21:00–22:00 | Indicative | 0.1 | 10 | 0.02 | 50 | 0.5 USD |
| USOil | USD | 22:00 – 21:00 (Sun–Fri) | 21:00–22:00 | Indicative | 0.1 | 10 | 0.01 | 1000 | 1 USD |
Trading hours and spreads are indicative and may change due to market conditions.
Effective date subject to change based on market conditions
| Field | Value |
|---|---|
| Symbol | A50 |
| Currency | USD |
| Trading Hours (GMT+2) | 00:00 – 19:30 (Mon–Fri) |
| Break Time | 07:30–08:00, 19:30–00:00 |
| Target Spread | Indicative |
| Minimum Trade Size | 0.1 lots |
| Maximum Trade Size | 10 lots |
| Trade Size Step | 0.1 |
| Contract Size | 10 |
| Min Tick Value | 1 USD |
Trading hours and spreads are indicative and may change due to market conditions.
Leverage allows traders to control larger positions using a smaller initial capital requirement. While leverage can increase market exposure, it also significantly increases risk.
Different leverage levels may apply depending on account type and asset class.
Margin = (Lot Size × Contract Size × Opening Price) ÷ Leverage
Index CFD Example
Contract size: 50
Price: 1,677.00
Lots: 5
Margin requirement calculated based on leverage applied
Commodity CFD Example
Contract size: 1000
Price: 106.11
Lots: 8
Margin based on applicable margin rate
Margin requirements may change depending on market volatility and account conditions.
Margin Call: Triggered when account equity falls below required maintenance levels
Stop-Out: Positions may be closed automatically if equity reaches critical levels
Margin thresholds vary by account type.
CFD spreads vary by instrument, liquidity, and trading session. Indicative spreads are shown during active trading hours.
After-hours pricing may differ when underlying exchanges are closed.
Swaps are applied when positions are held overnight and reflect financing costs based on the underlying instrument.
Calculated daily at server rollover time
Triple swap may apply on certain days to account for weekends
Dividend adjustments may affect swap values for index CFDs
Day 1
Price: 106.11
Sell 8 lots
Contract size: 1000
Exposure: $848,880
Day 2
Price drops to 105.20
Position closed
Profit calculated based on price difference and financing costs
Day 1
Index price: 1,677.00
Buy 5 lots
Contract size: 50
Day 2
Index rises to 1,686.20
Position closed
Profit = Price difference × contract size – financing cost
Examples are for illustrative purposes only and do not represent actual results.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Trading CFDs may not be suitable for all investors. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Past performance does not guarantee future results.
Forex trading and CFDs are leveraged trading products. You may lose your original account principal or a considerable amount of investment capital. Leveraged trading involves high risk and may not be suitable for all investors. Therefore, carefully consider your investment objectives, investment experience, source of funds, risk tolerance, and other relevant circumstances. Before engaging in any transactions with your chosen broker, please carefully read and understand their risk disclosure policy. The information on this website is not directed at residents of the United States, Belgium, Cambodia, Hong Kong, New Zealand and the United Kingdom; nor is it intended for distribution or use by any person in any country or jurisdiction where the publication or use of such information would be contrary to local laws or regulations.
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