CFD stands for Contract for Difference. CFD is a financial instrument that allows traders to invest in an asset class without actually owning the underlying equity index, commodity or bond. The advantage to this structure is that the CFD trader carries no risk of having to take possession of the physical underlying asset.
Often used to gauge potential inflationary pressure on the economy, commodities are susceptible to sudden price movements that may present trading opportunities.
View the margin requirements of your region on our regulatory page.
DISCOVER INNOVATIVE TOOLS FOR TRADERS
See Min, Max and Average spread data from quote periods of 15 minutes up to 3 months.
Compare how commodities have moved relative to other currency pairs. Analyze your portfolio exposure and risk.
See candlestick patterns plotted over recent currency movements.
Zero in on which currency and commodities pairs show the most significant price fluctuations over various time periods.
Frequently Asked Questions
A CFD (contract for difference) is a popular type of derivative product that gives traders the ability to speculate on, or hedge on movements in the underlying equity indices and commodities without the need to physically own those assets. That means traders don’t need to pay some of the associated costs of ownership such as account management fees, commissions, and, in some countries, stamp duty. A trader’s profit or loss from a CFD trade is determined by the difference between the price at which they buy it and the price at which they sell it, plus or minus any finance charges.
At OANDA you can trade the world’s most popular commodities such as brent crude oil, west texas oil, corn, natural gas, soybeans, sugar and wheat. See all the OANDAlive market rates in real time.
CFD finance charges, whether paid or received, are assessed using the discount rate associated with the CFD. OANDA applies a spread to the discount rate. OANDA publishes its CFD interest rates, expressed as bid and ask rates for each CFD in real-time on OANDA's Historical Interest Rates Tool. Your CFD finance charges on an open position will be netted; meaning that the rate earned or charged on a CFD trade will be the difference between the CFD interest rate and the interest rate on the currency. You will pay finance charges in the event of a negative interest rate and you will earn finance charges in the event of a positive interest rate.
You can trade CFDs on all OANDA platforms including the Desktop trading platform, Mobile trading apps for iOS and Android and OANDA MT4, provided your regulatory body allows CFD trades. Visit the OANDA Trading Platforms page to download our desktop and mobile versions on your choice of operating system.
CFD have no fixed lot requirements. Flexible order sizes give traders greater control in sizing their trade positions and allocating their portfolio.
Leverage offers the trader the ability to enter into a CFD contract using funds that represent only a fraction of its actual value. Used with caution, leverage can amplify your potential gains which are based on the full leveraged amount of the trade. However, it is important to remember that the leverage on a CFD, as with other types of trading, is a significant risk factor that can amplify both positive and negative results. You should have a clear understanding of the risks associated with margin trading. Please see OANDA's margin policies for more information.
In financial markets, prices can move quickly and unexpectedly, driven by factors such as economic news, earnings announcements, political changes, or natural disasters. Volatility may provide interesting trading opportunities, but it also increases trading risks. It is important to assess your personal tolerance for risk and adjust your trading approach accordingly in periods of high market volatility.
How do I add stock market indices, commodities and bonds to OANDA’s Desktop platform:
1: Select the “Tools” option on the menu bar of the OANDA platform
2: Select “User Preferences” on the User Preferences settings
3: Choose the “QUOTES” tab and select “CFDs” from the dropdown menu
4: Add any CFD instruments that you would like to monitor and trade by selecting the “Add All” or “Add” button
To enable CFDs on your OANDA and MT4 Desktop platforms, or on your choice of mobile operating system (iOS or Android) check this PDF with instructions on How to Add CFDs.
OANDA's CFD hours of operation coincide with the global financial markets. CFD trading is available from Sunday approximately 5 p.m. to Friday 5 p.m., New York time. Select the OANDA division which you are registered to see a list of OANDA OANDA Market Hours.
Our deposit options vary based on the OANDA division with which you hold your account. Please check the relevant Deposit Funds with OANDA section for more details.
There is no minimum deposit or minimum balance required to open an OANDA account for CFD trading. You only need make sure to have enough equity to open positions of sizes you are comfortable with including margin requirements.
The OANDA platform supports margin trading, which means you can enter into positions larger than your account balance. OANDA’s margin rules vary based on the regulatory requirements applicable to the OANDA division with which you hold your account. Please select the applicable OANDA division to learn more details about OANDA Margin Rules for CFD trading.
OANDA’s registration forms, legal and trading documentation vary based on the OANDA division with which you hold your CFD trading account. Please check the relevant Legal & Regulatory Documentation section for more details.