What is the difference between Cash CFDs and Futures CFDs?

While both positions rely on the same underlying market or exchange, there are key differences between a cash CFD (e.g., US Crude Oil) and a rolling future CFD (e.g., BRENT.fs).

The most key point to remember is that cash CFDs are traded and transacted with immediate effect, at the current market price – that is why you will hear the cash CFDs referred to as the “spot market,” because you are buying “on the spot.”

Futures contracts are different because you have the ability to buy a certain quantity of a commodity or financial instrument at an agreed price with a pre-determined delivery date in the future.

You must also consider that trading hours and contract sizes are also different – Cash CFDs operate on longer trading hours and smaller contract sizes compared to Futures CFDs – while price adjustments (rollovers) may apply for Futures CFDs while financing charges and dividend adjustments apply to Cash CFDs.

For more detailed information about cash CFDs and futures CFDs, we recommend reading this article.