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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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Do not confuse

Common comparison error

The same symbol under CFD can denote spot, futures, index, derivative, model, or Call put binary option.

Practical use

How to verify CFD

Read CFD together with Binary option, Call/Put binary option, Commodity binary option. The comparison must preserve the exact rule, value, state, and evidence described below.

A neutral example

An index CFD follows a calculated basket. Constituents, weights, market close, source, and Binary option are checked instead of treating it as one share. The result is classified under CFD because profit and loss vary with leveraged price movement and liquidation mechanics rather than a fixed binary payoff.

Evidence path

Where to verify CFD

Use the source that governs the exact contract, account, entity, or platform state. A general definition cannot replace current broker terms.

Broker contract specificationConfirm the outcome condition, strike or barrier, observation window, expiry, payout, tie rule, and settlement record for the exact product.
CFTC binary options resourcesReview product-risk and fraud explanations published by the U.S. derivatives regulator.Open source