In plain English
What Futures CFD means
The client does not become a party to the exchange-traded futures contract and does not acquire a delivery obligation. Instead, the provider offers an over-the-counter CFD that follows the selected futures contract’s price. A Futures CFD normally has a stated last-trading or expiry date. The provider may close, roll or otherwise handle an open CFD position near that date according to its terms.
Why it matters
A futures price may differ from the spot or cash price because it reflects the market’s pricing for a future date. For commodities, this can include storage, financing, expected supply and convenience effects; for equity indices, expected interest and dividends can matter. A Futures CFD may therefore have a different holding-cost profile from a rolling Cash CFD.
Example
A June oil-futures CFD is quoted at $75.00, with a contract size of 100 barrels. A client buys one CFD and later closes it at $76.20. The simplified gain is ($76.20 − $75.00) × 100 = $120. This excludes the provider’s spread, commission, any expiry-related handling and other charges.
Quick answers
Common questions
Can a Futures CFD lead to commodity delivery?+
Generally, no. The client holds a CFD with the provider, not the exchange-traded futures contract itself. The provider’s terms should specify how the CFD is settled or managed before the referenced future expires.
Why does a Futures CFD have an expiry date?+
Its reference is a particular futures contract, and futures contracts are tied to defined settlement or delivery months. The CFD’s trading and close-out schedule follows the provider’s terms for that reference contract.
Sources