CFD Trading

CFD (Contract for Difference) trading is a form of derivatives trading where you speculate on the price direction of an asset without owning it. You profit from the difference between the opening and closing price. CFDs allow both long (buy) and short (sell) positions with leverage.

Margin is the deposit required to open and maintain a leveraged position. For example, with 1:100 leverage, you need $1,000 margin to control a $100,000 position. If your account equity falls below the margin call level (50% for Cent/Standard, 60% for Raw, 80% for Institutional), you will receive a margin call.

Retail accounts (Cent, Standard, Raw) have Negative Balance Protection, meaning your losses cannot exceed your deposit. Institutional accounts do not include this protection. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

CFDs have no fixed expiry date (most positions can be held indefinitely subject to overnight swap charges), whereas futures have set expiry dates. CFDs are traded over-the-counter (OTC) through your broker, while futures trade on centralized exchanges. NEOMAAA also offers Futures CFDs which mirror futures contract pricing.

The stop-out level is the equity threshold at which your positions are automatically closed to prevent further losses. At NEOMAAA, stop-out levels are: 30% (Cent/Standard), 40% (Raw), and 50% (Institutional). Positions are closed starting from the largest losing position.

Yes. Holding CFD positions overnight incurs swap charges (or credits), which reflect the cost of financing the leveraged position. Swap rates vary by instrument and are published in the trading conditions. Swap-free accounts are available for up to 2 months after account opening.