Contracts for Difference

Contracts for Differences (“CFDs”) allow traders to speculate on and benefit from the price movements of an underlying asset without owning the asset. Profit or loss is based on the difference between the opening and closing prices. CFDs allow traders to take advantage of both upward and downward market movements by opening long or short positions. The use of leverage means that a smaller amount of capital is needed to open a large position, which can increase potential returns but also increases the risk of losses.

While CFDs can offer benefits such as greater capital efficiency and the ability to trade in different market conditions, they require active monitoring and a good understanding of how the markets move. CFD trading carries a high level of risk. Market prices can change rapidly, it is important to understand how the product works and to manage risk carefully before trading.

Instruments

CFD Shares CFD Indices CFD Commodities
CFD shares allow traders to speculate on the price movements of individual company stocks without actually owning the shares. By trading a share CFD, you can go long if you expect the price to rise, or go short if you expect it to fall.

Trading shares as CFDs provides the flexibility to access a wide range of markets with leverage, while avoiding the need to buy and hold the underlying stock. This enables traders to potentially profit from both rising and falling markets and to diversify their strategies across multiple shares.
Symbol Description CFD Type Leverage Minimum Trade Size Trade Step Size Financing Rate Commission
FB Meta Platforms, Inc. Shares 1:50 100 1 87.2% per anum based on BTMT Vip LEVEL starting from 0.072 make 0.064 taker (BTMTVIP 1)
GOOGL Google Inc. Shares 1:50 100 1 87,2% per anum based on BTMT Vip LEVEL starting from 0.072 make 0.064 taker (BTMTVIP 1)
MSFT Microsoft Corporation Shares 1:50 100 1 87,2% per anum based on BTMT Vip LEVEL starting from 0.072 make 0.064 taker (BTMTVIP 1)
NVDA NVIDIA Shares 1:50 200 1 87,2% per anum based on BTMT Vip LEVEL starting from 0.072 make 0.064 taker (BTMTVIP 1)
TSLA Tesla Shares 1:50 100 1 87,2% per anum based on BTMT Vip LEVEL starting from 0.072 make 0.064 taker (BTMTVIP 1)
V Visa Inc. Shares 1:50 100 1 87,2% per anum based on BTMT Vip LEVEL starting from 0.072 make 0.064 taker (BTMTVIP 1)
XOM Exxon Mobil Corporation Shares 1:50 300 1 87.2% per anum based on BTMT Vip LEVEL starting from 0.072 make 0.064 taker (BTMTVIP 1)
CVX Chevron Corporation Shares 1:50 300 1 87.2% per anum based on BTMT Vip LEVEL starting from 0.072 make 0.064 taker (BTMTVIP 1)
When you open or close a trading position, the spread, which is the difference between the current ask and bid price, will be applied to your account. Please note that BITmarkets may adjust spreads, reduce leverage, set maximum order limits, and manage total client exposure as needed. Margin requirements may also be increased in response to changing market conditions.

FAQs

On BITmarkets, you can trade shares, commodities, and indices, with additional assets and instruments added regularly as they become available. This provides trader with the flexibility to explore new markets and diversify trading opportunities.

CFD trading lets you trade the price movements of an underlying asset without owning it. When a trade is opened, a contract is created to exchange the difference between the asset’s price at the start and at the close of the trade, which is why it’s called a Contract for Difference.


CFDs make it possible to trade with leverage, allowing you to use a smaller amount of capital while still accessing the potential of the market. CFDs provide many of the same opportunities as trading shares, commodities, or indices, without the need to buy the underlying asset.


With CFDs, you can explore a wide range of markets in a flexible and accessible way, giving you the chance to diversify your trading across different asset groups and manage your capital efficiently.

Trading a CFD begins by selecting an asset offered by the broker, such as a shares, indices, commodities, or another available instrument. Once the asset is chosen, the position is opened by setting key parameters, including the trade direction (long or short), leverage, invested amount (margin), stop-loss, and other settings depending on the broker. The broker then provides the opening price and details any additional fees, such as overnight charges. The position remains open until it is closed, either manually by the trader or automatically. Automatic closure may occur if a stop-loss or take-profit level is reached, or if the contract expires. When the position is closed, any profit is paid to the trader, while losses are settled with the broker. The outcome is determined by the difference between the asset price at the opening and closing of the trade.
Leverage allows you to use your capital more efficiently by only putting up a portion of the total position value, known as margin. When trading with leverage, profits and losses are calculated based on the full size of your position, not just the margin invested. Leverage can significantly increase both potential profits and potential losses, so it is important to use it carefully and understand the risks involved.

Going long, or opening a long position, is a trading strategy where a trader buys an asset with the expectation that its price will rise. Profit is made if the value of the asset increases. Long positions are the most common way to trade and can be combined with other strategies.


Short selling, or going short, is a trading strategy that allows a trader to profit when the price of an asset declines. By opening a short position, gains are made if the value of the instrument falls. This approach is also often used to protect or hedge other investments against potential losses.

Certain financial products such as CFDs derive their value from other assets rather then existing independently. The underlying asset is the real financial instrument, for example, a barrel of crude oil, shares or a currency pair, that determines the value of the derivative. The price movements of the underlying asset directly affect the value of the CFD. While the underlying asset can be purchased and owned, a CFD is a contract based on it and does not provide ownership. This allows traders to participate in market movements without holding the actual asset.
CFDs do not have a set expiry date, which means positions can be held for as long as desired, whether going long or short. However, CFD trades come with spreads and overnight fees, so holding a position for an extended period can result in additional costs.
The information provided herein are for educational purposes only and should not be considered investment advice, a personal recommendation, or an offer or solicitation to buy or sell any financial instruments. The material has been prepared without regard to any specific investment objectives or financial situation and does not comply with the legal or regulatory requirements for independent research. Not all financial instruments or services mentioned are offered by BITmarkets, and any references to past performance of a financial instrument, index, or investment product should not be relied upon as an indicator of future results. BITmarkets does not guarantee the accuracy or completeness of the information provided and assumes no liability for its content. It is essential to understand the risks involved in trading and to only invest capital that you are willing to risk losing.