CFD Trading vs Owning the Underlying Asset
Owning an asset gives you the asset and its rights; a CFD gives price exposure, easy shorting and leverage, with financing costs. A side-by-side comparison.
Research · Learn CFDs
Learn CFDs
CFD education by market group.
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What Does a CFD Trade Really Cost?
A CFD trade's cost adds up the spread, any commission, overnight financing and conversion fees. A worked example on a share CFD shows how 5,000 costs about 2.
How to Size a CFD Position Using Risk per Trade
Position size = risk amount ÷ (stop distance × value per point). Worked examples for a currency pair and an index CFD, and why margin is not the guide.
How Overnight Financing Works on a CFD Position
Holding a cash CFD past the daily cut-off triggers a financing charge or credit: a benchmark rate plus a fee. How it works for indices, shares, FX and more.
Market, Limit and Stop Orders in CFD Trading
A market order fills now at the best price; a limit fills only at your price or better; a stop triggers at a set level. How each CFD order type works.
How to Calculate the Margin for a CFD Trade
CFD margin equals position value divided by leverage. Worked examples for a currency pair and a share CFD, and what changes the margin you need.
What Is Margin in CFD Trading?
Margin is the deposit a provider requires to open and keep a leveraged CFD position. How initial margin, used and free margin work, and the risks.
Leverage Mistakes That Drain New CFD Accounts
Two traders, one losing idea: how maximum leverage, sizing by margin, no stop, adding to losers, financing and weekend gaps turn a 1% loss into 51%.