CFDs on Futures

A CFD (Contract for Difference) is a contract, the value of which goes up or down depending on the price of the base asset. A Contract for Difference is a form of a financial agreement between two parties (Buyer and Seller). A CFD lets you speculate on increases and declines of prices using leverage and without additional obligations, such as ownership of the asset.

Formally, a CFD is a financial instrument similar to futures. However, it is based on a certain asset, and the trader makes a profit when its nominal value changes. The asset can be any financial instrument - stock, stock indices or commodities, etc. There is no transaction made with the base asset, so this instrument can also be seen as some sort of agreed upon agreement between a trader and CFDs broker.

Your CFD trading profit or loss is calculated using your total position size multiplied by the difference between your opening and closing prices.

The main difference between these two assets is that futures are traded on an exchange platform, while CFDs are traded over the counter. You can also trade CFDs on futures with much less funds on your account than you need to trade futures, as it becomes possible to work not only with a whole number of contracts but also with parts of contracts.

RoboForex makes it possible to profit from rising and falling prices of futures contracts using CFDs. These are derivative financial instruments, so you do not need to buy and sell futures directly, incurring the obligation to own the asset.

CFDs on futures can be used both for price protection and for speculative trading. They allow investors to earn income from changes in futures prices without the need to own real assets, and at a lower cost than buying real assets.

RoboForex offers 3 types of US futures for buying and selling with 1:100 leverage. You can follow the rise and fall of prices with the help of fast real-time charts offered by the company.