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GlossaryProducts & contracts

CFD

A leveraged contract for difference whose profit or loss changes with price movement. It is not a fixed-payout binary option.

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Direct answer

Where this term appears

This term usually appears in a product selector, order ticket, contract specification, or settlement explanation. Read the full rule instead of inferring the contract from its marketing name.

Use the definition above together with the exact value, condition, timestamp, account, product, or payment context shown by the broker.

Do not confuse

How CFD differs from related terms

CFD is often researched beside Path-dependent binary option and Call/Put binary option and Commodity binary option. The labels can appear in the same workflow, but they do not describe the same field or condition.

01
Path-dependent binary option

A contract whose outcome depends on what price does during the observation period, not only where it finishes.

02
Call/Put binary option

A binary-platform label for a High/Low or Up/Down contract based on whether price finishes above or below a reference level. It is not the exercise right in a conventional call or put option.

03
Commodity binary option

A fixed-outcome contract referenced to a commodity such as gold or oil, subject to the broker's price source and trading schedule.

Practical use

Describe the event that determines the payoff

CFD means a leveraged contract for difference whose profit or loss changes with price movement. It is not a fixed-payout binary option. A contract label is shorthand for an outcome condition, observation rule, expiry, and predefined payoff. Marketing names vary, so the written specification matters more than the label.

A neutral example

Translate the product into a neutral sentence: what must happen, which price is observed, when observation begins and ends, what equality means, and how much cash is returned for each result state.

01
Specification

Product rules covering observation, equality, cancellation, and settlement.

02
Order ticket

The accepted contract's asset, condition, strike or barriers, expiry, stake, and payout.

03
History

A settled example retaining the final value, result, timestamps, and any correction.

In a broker review

How to use CFD in a comparison

In a broker review, do not read CFD in isolation. Match the broker's own definition to the relevant contract, account, pricing, payment, or platform screen and record the condition that changes its meaning.

Comparison context

Why it matters when comparing brokers

How to use this term

Product labels can look similar while using different settlement rules. Identify the exact condition, strike or barrier logic, observation period, expiry method, and stated payout before comparing one broker with another.

What it does not prove

A familiar product name does not prove that two brokers offer the same contract. Platforms can use different definitions, price references, expiry cutoffs, and tie rules.

Broker checklist

What to verify

Check these points on the broker's product screen, account flow, terms, or help pages.

01
Contract rule

Confirm the precise winning, losing, tie, and void conditions.

02
Price reference

Identify the quote source and price used at entry and settlement.

03
Time control

Check the observation window, expiry method, and order cutoff.

04
Displayed return

Compare the ordinary payout and any condition attached to a headline maximum.

Quick answers

Common questions

Short answers for users comparing binary options brokers and account conditions.

What is CFD commonly compared with?

CFD is commonly compared with Path-dependent binary option. Path-dependent binary option means: A contract whose outcome depends on what price does during the observation period, not only where it finishes.

Why does this term matter when comparing brokers?

Product labels can look similar while using different settlement rules. Identify the exact condition, strike or barrier logic, observation period, expiry method, and stated payout before comparing one broker with another.

What should I check when comparing this feature?

A familiar product name does not prove that two brokers offer the same contract. Platforms can use different definitions, price references, expiry cutoffs, and tie rules. Check the broker's definition, applicable terms, and account or product screen before relying on the label.