CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
What are the different types of spread?
- Floating spread: Changes throughout the day based on market conditions like volatility and liquidity. All CFD instruments on our platform have floating spreads.
- Fixed spread: Stays the same regardless of market conditions. This type of spread is not available for CFD instruments on our platform.
What factors affect the spread?
The size of the spread depends on liquidity and market activity. A tighter spread, meaning a smaller difference between the buy and sell prices, is common for major stocks, currencies, and commodities since they have high trading volume. A wider spread, with a larger price difference, is usually found in less liquid assets like small-cap stocks.
❗️ Important
During times of low liquidity or high volatility the spread may widen, which might affect your open CFD positions. In some cases, if there aren’t enough funds to cover the loss, the position may close automatically.
Can the spread be different on other CFD platforms?
Yes. Spreads vary across trading platforms as each broker determines its own pricing structure. This includes how they adjust the base spread (the difference between buy and sell prices) and whether they apply fixed or floating spreads.
How can I check the spread?
You can check the average spread of an instrument over a specific period on the Trading Instruments page 👉 here.