CFD Forwards
CFD forwards are a popular vehicle for traders, and we’re excited to announce that Pepperstone now offers a range of CFD Forward contracts, encompassing a variety of popular global indices and commodities. Traders can trade these instruments, including AUS200, GER40, US500, NAS100, Crude Oil, and Gold, on Pepperstone’s MetaTrader 5 and cTrader platforms coming soon. All with slick charting, extensive risk management tools, news, and rapid execution.
What are CFD Forwards?
Our forward CFD contracts derive their pricing from the front-month futures contract. Unlike Exchange Traded futures, where the buyer can choose to have their position cash settled at the expiration date, our forward CFD markets will be automatically rolled shortly before the expiration date of the underlying contract into the next month's contract.
Any open positions held over the contract rollover date will be cash-adjusted for the step up/down in the change of the price to the next-month contract. This will ensure smooth and continuous pricing. Traders can, of course, close positions as per their strategy at any time of their choosing, just as they would do with any of our cash markets.
Traders familiar with our cash markets understand there is a daily funding charge/payment (Swap)(depending on the product and whether the position is held long or short). If the position is held past the daily rollover time, with forward CFDs there is no overnight funding and no daily adjustment for dividends; rather, this is factored into the price of the forward contract. View our trading spreads, swap rates and commissions on our website for more details.
As each day passes, the cash and forwards price will converge due to the reduction in the ‘basis’ or ‘fair value’, and it gets closer to the set expiration date of the underlying futures contract.
Benefits of trading CFD Forwards (Futures) with Pepperstone
Traders may look at trading CFD Forwards contracts for various reasons, including:
Increased Leverage: for pro clients, CFD Forwards can be traded with higher leverage than exchange traded futures. For traders with non-institutional account balances and who typically would have multiple open positions, CFD forwards can be an attractive alternative.
New opportunity with Pepperstone: Traders may have cut their craft using forwards or exchange traded futures but haven’t had the option of trading forwards (Futures) with Pepperstone. Well, now they can, meaning they have the choice to trade from one account.
Liquidity: Just as Pepperstone’s cash markets have offered for many years, our forward CFDs have exceptionally deep liquidity at the bid-offer (or ‘touch’) price. This can help to reduce the drag that price slippage impacts when transacting with brokers with poor liquidity.
Coming soon: Trade CFD Forwards (Futures) on TradingView – For traders who analyse and execute their trades on TradingView Pepperstone has one of the most compelling offerings on this platform and was named TradingView broker of the year in 2022.
Automated trading on forward CFDs – trade your way, create algos to execute your strategy and exploit your edge trading CFD forwards on MT5 or cTrader.
Pay no overnight funding charges with futures prices.
Go long or short.
CFD Forwards (Futures) you can trade with Pepperstone
| Index | Symbol | Minimum Spread | Contract Months | Minimum Size |
|---|---|---|---|---|
| AUS200 | AUS200-F | 3 | 3 Months | 1 |
| GER40 | GER40-F | 3 | 3 Months | 1 |
| HK50 | HK50-F | 10 | 1 Month | 1 |
| JPN225 | JPN225-F | 16 | 3 Months | 1 |
| UK100 | UK100-F | 3 | 3 Months | 1 |
| US30 | US30-F | 5 | 3 Months | 1 |
| NAS100 | NAS100-F | 3 | 3 Months | 1 |
| US500 | US500-F | 1 | 3 Months | 1 |
| Commodities | Symbol | Minimum Spread | Contract Months | Minimum Size |
| Crude | Crude-F | 5 | 1 Month | 1 |
| Brent | Brent-F | 5 | 1 Month | 1 |
| Metals | Symbol | Minimum Spread | Contract Months | Minimum Size |
| Gold | XAUUSD-F | 0.5 | 2 Month | 1 |
| Silver | XAGUSD-F | 3 | 3 Months | 1 |
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