Cfd vs Futures
Look-alike pair
Full entries: Cfd.
A CFD and a futures contract are both derivatives that let you speculate on price without owning the underlying asset. The single difference that matters is that a futures contract is standardised and exchange-traded, while a CFD is a bespoke contract between you and your broker, so its terms, pricing and regulation vary by firm and country.
Side by side
| Cfd | Futures | |
|---|---|---|
| Trading venue | Off-exchange (OTC); you trade directly with your broker, not on a public exchange. | On a regulated exchange; the exchange matches buyers and sellers and guarantees performance. |
| Contract terms | Set by the broker; size, expiry and margin requirements can differ from firm to firm. | Standardised by the exchange; size, tick value and delivery dates are fixed and public. |
| Expiry | Usually no fixed expiry; positions roll daily with an overnight financing charge. | Fixed expiry or settlement date; you must close, roll or take delivery before it passes. |
| Pricing and spread | Broker quotes a bid/ask spread; the broker is the counterparty and may hedge elsewhere. | Exchange publishes a central order book; price and volume are visible to all participants. |
| Regulation | Rules vary by country and regulator; leverage caps and protections differ widely. | Exchange and clearinghouse rules apply; oversight is typically more uniform across participants. |
| Field mark | The contract is described in your broker's terms and conditions, not on an exchange website. | The contract has an exchange ticker symbol and a published specification sheet. |
Which word to use
Use CFD when you mean the broker-offered contract that tracks an underlying price with no fixed expiry; use futures when you mean the standardised, exchange-traded contract with a set expiry and public specifications.
Family: XI · Look-alikes · Index A–Z