Jump to content
  • 0

Spot CFD vs Futures CFD - which one to trade?

Guest SaintPierre


Guest SaintPierre

I am trying to figure out the practical difference between trading the spot vs the futures CFDs offered by IG. 

What I understand is that:

spot CFDs have a smaller spread than futures CFDs

spot CFDs have funding charges while futures CFDs do not

spot CFDs don't expire while futures CFDs at or around contract expiry get automatically closed and re-opened and the IG spread gets charged again

As a swing trader, with trades ranging in length between 3 to 10 days - therefore with the majority of trades not being around the futures contract expiry - am I better off using the spot or the futures CFDs?

Has anyone figured this out?


Thanks 😀 

Link to comment

1 answer to this question

Recommended Posts

  • 1

Hi @SaintPierre, you are correct in your understanding (above) though there are a few other considerations beyond length of time holding the trade open such as trade size, short or long and which market.

See this page on overnight funding  https://www.ig.com/uk/learn-to-trade/overnight-funding

The general consensus seems to be that if you are intending to hold for longer than 2-3 weeks you would be better off with futures or forwards (FX). 

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
    • Total Posts
    • Total Members
    • Most Online
      10/06/21 10:53

    Newest Member
    Joined 07/06/23 14:33
  • Posts

    • Look Ahead to 8/6/23: eurozone, Japan growth; US initial jobless claims; Crest Nicholson, MITIE earnings Growth is in focus as investors await eurozone and Japan GDP data, plus keep an eye out for US initial jobless claims ahead of the Fed monetary policy meeting next week. Crest Nicholson and MITIE post results. Angeline Ong | Presenter, Analyst and Content Editor, London | Publication date: Wednesday 07 June 2023              
    • With the price of Brent having failed between $77.50 and $78.50 three consecutive times in the past month, we will go short at $76.70 with a downside target at $72.00 and a stop-loss at $78.55 on a daily chart closing basis. Axel Rudolph FSTA | Senior Financial Analyst, London | Publication date: Wednesday 07 June 2023
    • Charting the Markets: 07 June Indices grind higher. EUR/USD, GBP/USD and USD/CAD struggle to make headway. And WTI and gold trade in low volatility while wheat slips back. Axel Rudolph FSTA | Senior Financial Analyst, London | Publication date: Wednesday 07 June 2023                       This is here for you to catch up but if you have any ideas on markets or events you want us to relay to the TV team we’re more than happy to.
  • Create New...