Side-by-side structure
Course context: This lesson belongs to a practical beginner curriculum for Pakistan.
| Feature | Broker CFD | Exchange-listed futures |
|---|---|---|
| Venue | OTC relationship with the broker | Central exchange and clearing structure |
| Contract size | Broker symbol specification; smaller retail volumes may be available | Standardized exchange contract, sometimes with micro versions |
| Expiry | Often no fixed expiry; financing or swap can apply | Defined contract month and expiration |
| Price reference | Broker Bid/Ask derived under its pricing model | Orders interact in an exchange order book |
| Settlement | Cash P/L in the trading account | Cash or physical settlement depending on contract |
| Main recurring cost | Spread, commission and possible swap | Bid/ask, brokerage/exchange fees and roll basis |
What expiry changes
A futures position cannot be treated as permanent. Before expiry, a trader normally offsets the contract, rolls to a later month, or proceeds to the contract's settlement process. CME explains that rolling closes the near-month position and opens a later-month contract; the two contracts can have different prices, so the roll is not a free date change.
Matched-exposure worksheet
| Input | CFD calculation | Futures calculation |
|---|---|---|
| Nominal exposure | Lots × contract size × price | Contracts × exchange multiplier × price |
| Initial cash requirement | Broker margin for symbol and account | Initial margin set for the contract/account |
| One-unit move | Lots × contract size × one price unit | Contracts × multiplier × one price unit |
| Holding cost | Estimated swap plus spread/commission | Fees plus gain/loss from closing and reopening another month |
| Exit constraint | Market hours, liquidity and broker execution | Liquidity of selected contract month and expiry timetable |
Practical comparison exercise
- Select one market represented by both a CFD and a futures contract.
- Record each official contract size and currency.
- Choose volumes with approximately equal nominal exposure.
- Calculate the cash result of a 1% adverse move.
- Add one week of published or observed costs.
- For the future, add the current roll difference and last trading date.
- Compare risk in cash—not the margin deposit alone.
Common classification errors
- Calling a perpetual CFD a futures contract because it tracks a futures-derived price.
- Comparing one CFD lot with one futures contract without matching multipliers.
- Treating margin as the maximum possible loss.
- Ignoring expiry, delivery rules or the cost of rolling.
- Assuming an exchange price and a broker Bid/Ask must be identical tick for tick.
Primary references
CME: expiration and contract roll · CME: expiration and settlement · Exness instrument scope
Questions from a first-time learner
Can I trade exchange futures at Exness?
Exness offers CFDs. Do not describe an Exness CFD position as an exchange futures contract.
Why can a futures price differ from spot?
Time to expiry, financing, storage, income and supply-demand can affect the basis.
Does a CFD never expire?
Many are open-ended, but the exact symbol specification and market availability must be checked.
Which requires less money?
Margin varies. Compare equal nominal exposure and total potential loss, not only the deposit shown.