CFDs, Oil, Indices, Metals

Forex Futures and Contract for Difference

Similarities of CFDs and Forex

CFD trading and Forex trading have many similarities. First, both types of trading involve a similar trade execution process. Traders can easily enter or exit the market in both rising and falling markets. Second, both CFD trades and Forex trades are executed on the same platform, using similar looking charts and pricing methods. In both cases, trades are executed in the over-the-counter (OTC) market, which is run entirely electronically within a network of banks, with no physical location or central exchange. Another similarity between CFD trading and Forex trading is that the only cost of trading is the spread, as opposed to other types of trading instruments that charge commissions and other finance fees.

Differences of CFDs and Forex

The main differences between CFD trading and Forex trading is that CFD trading involves different types of contracts covering a diverse set of markets, such as indices, energy, and metals, whereas Forex offers pure currency trading. When you trade CFDs, you have the opportunity to select different contracts that vary in increment value and currency type, depending on the country in which the underlying asset originates. Forex trading is all about trading one currency against another currency and always involves trading in uniform lot sizes.

A final difference between CFD trading and Forex trading relates to the general factors that tend to influence the different markets. CFD trading is mostly influenced by specific factors, such as supply and demand of a given commodity or trend changes associated with business sectors. Forex trading on the other hand is mainly driven by global events, like large employment shifts or international political changes.

 

Trading Benefits Include:

  • Trade on margin
  • No commissions
  • Profit in up or down markets
  • Quickly move between products
  • Increased leverage
  • Expanded product choices

CFD Trading Specifications

Our trading technology supports your trading ambitions. With our transparent cost structure, we can assure you that we execute every trade at the best possible rate.

Ticker in MT4 Description Contract size Margin Exchange
EURO50Cash DJ EURO STOXX 50 EUR 10 * DJ EURO STOXX 50 Index quote 900 Eurex
FRANCECash Cac 40 Index EUR 10 * Cac 40 Index quote 1 500 NYSE Liffe
DE30Cash Dax Index EUR 25 * Dax Index quote 3 400 Eurex
USTECHCash E-mini NASDAQ 101 USD 20 * NASDAQ 100 Index quote 1 700 CME Group Globex
US500Cash E-mini S&P 500 USD 50 * S&P 500 Index quote 2 800 CME Group Globex
UK100Cash FTSE 100 Index GBP 10 * FTSE 100 Index quote 1 700 NYSE Liffe
BrentCrude CrudeOil 1000 Barrels 2 500 NYMEX
WTICrude CrudeOil 1000 Barrels 2 500 NYMEX
US30Cash Mini-sized Dow USD 5 * DJ Industrial Index quote 3 100 CME Group Globex
JAPANCash Nikkei 225 Index USD 5 * Nikkei 225 Index quote 3 100 CME Group Globex

Bitcoin Specifications

You want to be ahead of time with your trading. We support your trading ambitions with our latest technology. With our transparent cost structure, we are able to provide you with the best possible rates for trading Bitcoin.

BTCUSD Specifications in Detail
Description Bitcoin vs US Dollar
Contract size 1 Bitcoin
Execution Market
Digits 2
Limit & Stop level 100
Freeze level 100
Margin 33%
Tick size 0.01
Tick value $0.01
Swap No swap
Trading time Standard
Minimum spread Classic Floating
Minimum Spread ECN Floating
Minimum trade size 0.01
Trade size increment 0.01
Commission No commission

CFD Terminology

Term

Definition

Contract for Difference (CFD) An agreement between a dealer and a buyer to deal in the difference amid the opening and closing price of a certain financial instrument.
Contract Size The contract size, which is ascertained by dealers, depicts a minimum amount that can be traded. Contract sizes may differ based on the fundamental market being traded and the peril craving of the trader.
Diversification To pick a broader range of markets to trade in order to lessen risk exposure integrated in one particular instrument.
Guaranteed Stop An order that lays down exactly at what price you will leave the market. This may need an additional charge, but may shield you from market instability.
Leverage Leverage provides the trader the prospect of controlling a larger CFD contract with a part of its actual value.
Long Position Leverage provides the trader the prospect of controlling a larger CFD contract with a part of its actual value.
Margin Requirement A sum of money that should be paid to the CFD provider to sustain your positions.
Short Position To go into a market by selling in expectation of generating a profit.
Spread The difference between the purchasing and the selling price of a financial instrument.