What is CFD?

Purpose

This guide explains what CFD is, what you are trading, and which account and pricing concepts you should understand before placing an order.

Key Concepts

• CFD is a Contract for Difference (CFD) trading service. You trade price movements without directly owning the underlying asset.
• Current supported symbol groups and Margin Rate rules are explained in the Supported Symbols and Margin Rate guide. Fee and swap details are explained in the Fees and Swap guide.
• Your CFD account is settled in USDT.
• Prices are shown as bid and ask quotes. Buy orders use the ask price, and sell orders use the bid price.
• The chart may not display the exact price used for every order. Order execution uses the available bid/ask quote at the time the order is processed.
• Spread, fees, swap, and market movement can affect your trading results.

Step-by-Step User Flow

1. Select a CFD symbol.
2. Review the current bid/ask price, spread, contract size, lot limits, and market status.
3. Choose a Market or Trigger order.
4. Enter the order value or lot quantity.
5. Submit the order.
6. If the order is filled, a position is created and appears in the Positions tab.
7. Monitor unrealized PnL, equity, margin level, and liquidation risk.
8. Close the position manually or allow your TP/SL to close it automatically when the conditions are met.

Cautions and Limitations

• CFD is not spot trading. You do not own, receive, or withdraw the underlying asset.
• Your execution price may differ from the displayed price because liquidity, spread, and market prices can change before your order is executed.
• Swap charges may apply when positions are held across settlement periods. See the Fees and Swap guide for swap calculation principles and settlement timing.
• Liquidation, PnL, equity, and margin level are critical risk metrics and should be understood together with the relevant formulas and examples.
• Some symbols may be unavailable during market closures, maintenance periods, rollovers, or trading rule updates.

FAQ

Is CFD the same as spot trading?

No. CFD is a Contract for Difference trading service. You trade price movements and settle profits and losses without owning the underlying asset.

Which currency is used for settlement?

All CFD account balances and settlements are denominated in USDT.

Why are there two prices?

The bid price is generally used when selling or closing a long position. The ask price is generally used when buying or closing a short position.

Can my execution price differ from the screen price?

Yes. Your execution price depends on the available market quote, spread, liquidity, and prevailing market conditions at the time your order is processed.