Home FAQ
What is CFD trading and how does it work?

CFD (Contract for Difference) trading lets you speculate on the price movement of assets—like crypto, forex, or stocks—without actually owning them. You go long if you think the price will rise, or short if you think it’ll fall. Profits (or losses) come from the difference in entry and exit prices.

What are perpetual contracts in trading?

Perpetual contracts are a type of derivative similar to futures, but with no expiration date. They’re commonly used in crypto trading and allow traders to hold leveraged positions indefinitely, paying or receiving funding fees over time.

Can I trade metals like gold and silver using CFDs?

Yes, metals futures like gold, silver, and platinum are commonly available through CFD trading platforms. You can go long or short and use leverage to amplify your exposure without physically owning the metal.

What’s the difference between futures and CFDs?

Futures are standardized contracts traded on exchanges with set expiry dates. CFDs are over-the-counter contracts that offer more flexibility—no expiry, customizable trade sizes, and easier access for retail traders.

How much leverage can I use when trading CFDs or metals futures?

It depends on the platform and asset class, but leverage can go as high as 1:500. Metals and crypto usually offer lower leverage due to higher volatility, while forex may allow more. Always be mindful of the risks.

Are perpetuals only for crypto trading?

They’re most commonly used in crypto markets, but the concept is expanding. Some decentralized platforms and advanced trading protocols are exploring perpetuals for commodities and synthetic assets too.

What are the risks of trading metal futures through CFDs?

While CFDs provide access and leverage, they also carry high risk. Commodity prices can be extremely volatile, and leveraged trades can result in significant losses if markets move against your position.

Do I need a special account to trade perpetuals or metals CFDs?

Most platforms offer these products within standard margin trading accounts. On decentralized platforms, you’ll typically just need a crypto wallet (like MetaMask) to access perpetuals on-chain.

How are prices determined for metal CFDs and perpetuals?

Prices are usually derived from real-time spot or futures market data. Reputable platforms aggregate prices from multiple sources to ensure fair and accurate pricing with minimal slippage.

Can I use trading bots or AI to automate CFD or perpetuals strategies?

Yes, many platforms now support AI-powered bots or third-party integrations that allow you to automate your CFD or perpetuals trades—using strategies based on technical indicators, market signals, or custom triggers.