What is CFD?

The term 'CFD' stands for Contract for Difference. It is effectively a “contract” between a buyer and seller (i.e., the trader and the broker), agreeing to pay the “difference” between the value of an asset at the time the trade was entered into and the value when the trade ends.

CFDs are commonly used as a way of trading assets like share CFDs, gold, oil, or other commodities without having to physically purchase those asset. Instead, you simply trade on that asset’s real-time price movements.

For example, if you were trading gold as a CFD you would not be buying any real bars of gold. Instead, you would just be trading on the price movements of the gold market. And because you are only trading on the price movements, CFD trading allows you to profit on upward or downward price movements, depending on which way you speculate.

Axi offers a wide range of products to trade as CFDs, including FX, bullion spot CFDs, commodity cash CFDs, commodity futures CFDs, index cash CFDs, index futures CFDs, cryptocurrencies CFD, and share CFDs. For more details on these products, please refer to our Market to Trade page.

You can find our full list of products in our Product Schedule.

IMPORTANT: Before opening trades, you should know what Base Currency is. The base currency (also known as the transaction currency), is the first currency to appear in a currency pair quotation. For example, if you were looking at the EUR/USD currency pair, the euro would be the base currency and the U.S. dollar would be the quote currency. The available base currencies for Standard and Pro accounts are AUD, CAD, CHF, EUR, GBP, HKD, JPY, NZD, SGD, and USD.