CFD trading
Trade CFDs with flexibility at OliveFX
Learn about CFDs in our Introduction to CFDs.
Access a huge range of global markets on our user-friendly online platform
Traders that wish to invest in the price movements of instruments can buy a Contract for Difference, rather than purchasing physical assets.
- You can also take advantage of fluctuations in the underlying instrument or security, which is popular form of investing for short-term investors or traders that seek to profit from market moves.
- OliveFX enables traders to take advantage of leverage and to spread capital across a range of different instruments rather than tie up capital in a single investment (Note:This is an approach that can increase risk).
- To mitigate the risk, traders can use OliveFX's risk management tool to hedge exposure
About CFDs
CFD, short for Contract for Difference, is a derivative financial instrument that enables investors to gain exposure to financial markets without physical ownership of the underlying asset. It is an agreement between the trader and the provider to exchange the difference in value between the opening and the closing level of a particular contract.
It has no expiry date, meaning that the investor (in this case you) decides when to close down their position, at which point the difference in value would be exchanged (i.e. profits paid or losses deducted).
CFDs are usually leveraged so only a fraction of the total value of investment needs to be deposited in your account in order to trade and the remaining amount is financed by the provider, in this case, by OliveFX. OliveFX permits you to trade with less leverage through a variable margin offering.
Key features for trading CFDs
CFDs on Indices
- Trading indices with OliveFX’s enables you to trade and invest in the US, UK, European, Asian and Australian market including: 100GBP, 200AUD, D30EUR, NASUSD, SPXUSD, U30USD etc.
- Indices are adjusted for dividends depending on the cash component of the dividend on individual shares within the index. OliveFX clients trading CFDs on Indices benefit from these dividends.
- With CFDs, the same margin requirements apply regardless of whether you’re selling or buying.
- Since you can take both short and long positions with CFDs, a bearish market holds the same risks for incurring losses, but it also offers potential opportunities for profit.
- Trading CFDs on Indices is far less costly than trading the underlying index, but offers the potential to deliver similar gains and losses.
- While many traders find CFDs appealing, always remember that they carry the same risk as trading any leveraged asset.
CFDs on commodities
- You can trade the following commodities on OliveFX’s platform: XAU/USD, USO/USD, UKO/USD, XAG/USD etc.
- Whether you go short or go long, the same rules and margin requirements apply when trading CFDs.
- The margin requirements for CFDs are lower than they are for the underlying asset. Click here for our contract specification details on CFDs.
- Since you can take both short and long positions with CFDs, a falling market retains the same risks when it comes to incurring losses, but it can also offer potential profit-taking opportunities.
- While the benefits of trading CFD may be clear, remember that all leveraged assets are subject to high risks and may not suit some people. You could lose more than you invest and can risk making further payments.
Contract Specifications for CFD Instruments
| Market | Symbol | Trading Hours (GMT) | Daily Break (GMT) | Contract Size | Minimum Trade Size | Pip Size | P/L Currency |
|---|---|---|---|---|---|---|---|
| Brent Crude Oil | UKOUSD | Daily 01:00 - 22:00 | Daily 22:00 - 01:00 | 100 bbl | 0.01 (1 bbl) | 0.01 | USD |
| WTI Crude Oil | USOUSD | Daily 23:00 - 22:00 | Daily 22:00 - 23:00 | 100 bbl | 0.01 (1 bbl) | 0.01 | USD |
| Natural Gas | XNGUSD | Sunday 23:00 - Friday 22:00 | Daily 22:00 - 23:00 | 100,000 MMBtu | 0.01 (1,000 MMBtu) | 0.01 | USD |
| Market | Symbol | Trading Hours (GMT) | Daily Break (GMT) | Contract Size | Minimum Trade Size | Pip Size | P/L Currency |
|---|---|---|---|---|---|---|---|
| Spot Gold | XAUUSD | Sunday 23:00 - Friday 22:00 | Daily 22:00 - 23:00 | 100 oz | 0.01 (1 oz) | 0.01 | USD |
| Spot Silver | XAGUSD | Sunday 23:00 - Friday 22:00 | Daily 22:00 - 23:00 | 1000 oz | 0.05 (50 oz) | 0.01 | USD |
| Symbol | Trading Hours (GMT) | Daily Break (GMT) | Contract Size | Minimum Trade Size | P/L Currency |
|---|---|---|---|---|---|
| 100GBP | Daily 07:00 - 21:00 | None | 1 | 0.1 | GBP |
| 200AUD | Daily 22:50 - 21:00 | Daily 05:30 - 06:10 | 1 | 0.1 | AUD |
| 225JPY | Monday 00:00 - Friday 21:15 | Daily 21:15 - 00:00 | 100 | 10 | JPY |
| CHN50USD | Daily 01:00 - 20:45 | Daily 08:30 - 09:30 | 1 | 0.1 | USD |
| D30EUR | Daily 07:00 - 21:00 | None | 1 | 0.1 | EUR |
| E35EUR | Daily 07:00 - 19:00 | None | 1 | 0.1 | EUR |
| E50EUR | Daily 07:00 - 21:00 | None | 1 | 0.1 | EUR |
| F40EUR | Daily 07:00 - 21:00 | None | 1 | 0.1 | EUR |
| H33HKD | Daily 01:15 - 17:00 | Daily 04:00 - 05:00 Daily 08:30 - 09.15 | 10 | 1 | HKD |
| NASUSD | Sunday 23:00 - Friday 21:15 | Daily 21:15 - 21:30 Daily 22:00 - 23:00 | 1 | 0.1 | USD |
| SPXUSD | Sunday 22:00 - Friday 20:15 | Daily 21:15 - 21:30 Daily 22:00 - 23:00 | 10 | 1 | USD |
| U30USD | Sunday 23:00 - Friday 21:15 | Daily 21:15 - 21:30 Daily 22:00 - 23:00 | 1 | 0.1 | USD |