How to read a CFD contract specification, field by field

A CFD contract specification is the provider's rulebook for one instrument: it states how many units of the underlying one lot represents, the smallest price step and what it is worth, the minimum and maximum trade size, the margin required, the trading hours, how overnight financing is charged, and whether the contract expires. Reading it takes about two minutes, and it answers the question every trade depends on: how much do I make or lose for each point the price moves?

Our guide to CFDs on stocks, indices and commodities explains how terms differ between asset classes. This guide is the practical companion: a walk through each field, three illustrative specifications worked through with numbers, and where to find the same information in MetaTrader 5.

Where to find the specification

Every regulated CFD provider publishes contract specifications, though the names vary: "contract specifications", "market information", "instrument details" or "product details". You will usually find them in three places:

• On the provider's website, often as a table or a downloadable document per asset class.
• Inside the trading platform. In MetaTrader 5, right-click a symbol in the Market Watch window and choose Specification. In cTrader, the symbol information panel shows similar fields. Web platforms often have an "info" icon next to each instrument.
• In the key information document (KID) for the product, which gives costs and a risk indicator but less operational detail. Our guide to reading a key information document covers it.

If the website and the platform disagree, the platform is usually more current, but ask the provider. Specifications change, especially margin rates, financing and trading hours around holidays.

The fields, one by one

Symbol and description

The symbol is the provider's own code: US500, SPX500, US30, GER40, DE40, XAUUSD, UKOIL, AAPL.US and so on. There is no standard. The description tells you the underlying, and it matters more than it looks. "US Tech 100 cash" and "US Tech 100 Dec" are different contracts with different pricing and costs. A share CFD description should tell you which exchange line it tracks.

Contract size

How many units of the underlying one lot represents. Examples of what you will see:

• Index CFDs: often 1, meaning one lot is worth one unit of the index currency per index point, but sometimes 10, 20 or 25 depending on the provider and index.
• Gold: often 100 troy ounces per lot on MetaTrader-style accounts, or 1 ounce per contract elsewhere. The gold lot size calculator explains the effect.
• Crude oil: often 1,000 barrels per lot, or 100, or 10.
• Share CFDs: usually 1 share per lot.

Contract size times price gives the notional value of one lot, the figure that margin and financing are calculated on.

Price digits, tick size and point

The number of decimal places in the quote (digits) and the minimum price change (tick size). Gold quoted to two decimals has a tick size of 0.01. An index quoted to one decimal has a tick size of 0.1. Be careful with the word "point": in MetaTrader a point is the smallest price increment for that symbol, while traders and most index CFD terms use "point" to mean one whole index point (1.0). When a provider says "1 dollar per point", read it as per 1.0 of index movement unless the spec says otherwise.

Tick value

What one tick of movement is worth for one lot, in the profit currency:

• tick value = tick size × contract size

A crude oil CFD with a contract size of 1,000 barrels and a tick size of 0.01 dollars has a tick value of 10 dollars per lot. A gold CFD with 100 ounces and a tick size of 0.01 has a tick value of 1 dollar per lot, so a 1.00-dollar move in gold is 100 ticks, or 100 dollars per lot.

Profit currency and margin currency

The profit currency is the currency your gains and losses are calculated in, normally the currency the underlying is priced in: US dollars for US indices, gold and oil, euros for the DAX, pounds for the FTSE 100. If your account is in a different currency, every result is converted, usually at the provider's rate, sometimes with a fee. The margin currency is the currency in which margin is calculated, often the same. See currency conversion and account base currency.

Minimum volume, volume step and maximum volume

The smallest trade size, the increment you can add, and the largest single order. A minimum of 0.1 lots with a step of 0.1 means you cannot trade 0.15 lots. These limits matter when you size a position from your risk: the position size calculator can give a fraction that you must round down to the nearest allowed step. A maximum volume per order does not stop you holding a larger position, but large orders may need to be split.

Margin requirement

Usually given as a percentage of notional value or as leverage. For EU retail clients, ESMA's limits set the floor: 5% (20:1) for major indices and gold, 10% (10:1) for minor indices and other commodities, 20% (5:1) for individual shares, among others. A provider may require more than the minimum, and often does for volatile or less liquid instruments, or around events and weekends. Some providers use tiered margin, where the rate rises for larger positions. The margin calculator does the arithmetic, and the ESMA leverage guide lists the limits.

Stops level and freeze level

The stops level is the minimum distance from the current price at which you can place a pending order, stop loss or take profit. A freeze level, where used, is the distance within which existing orders cannot be modified. Both are often zero on major instruments but can be meaningful on others, and some providers widen them around news.

Trading hours and sessions

The specification lists quote and trade sessions, usually in server time, which is not necessarily your local time. Look for:

• Daily breaks, such as a short pause each day when the underlying futures market closes, common on US index and commodity CFDs.
• Share CFDs that trade only during the underlying exchange's hours, sometimes with pre-market or after-hours sessions for some US shares; see pre-market and after-hours trading.
• Holiday schedules, which change hours temporarily and are usually announced separately.

The market hours tool shows exchange hours in your own time zone, which helps you translate server time.

Financing (swap)

How overnight holding costs are calculated for undated CFDs. You may see:

• Swap long and swap short values, the charge or credit per lot per night;
• Swap type, such as in points, in money, or as an annual percentage interest rate;
• Triple-swap day, the weekday on which three nights are charged to cover the weekend. For index CFDs this is often Friday; for forex it is usually Wednesday because of spot settlement. The triple swap entry explains why.

Financing for index and share CFDs is often described in words rather than numbers: for example, a benchmark overnight rate plus or minus a fixed markup, applied to the notional value and divided by 360 or 365. The swap calculator and our guide to swap and overnight financing cover the arithmetic.

Dividend and corporate action policy

For share CFDs and price-return index CFDs, longs are credited and shorts debited around ex-dividend dates. The spec or a linked policy explains how, and whether the adjustment is gross or net of withholding tax. See dividends and corporate actions.

Expiry, last trading day and rollover

Futures-based (dated) CFDs show an expiry date and a last trading date, which is usually a little earlier than the underlying futures contract's own expiry. The spec also says whether the position closes automatically at expiry or can be rolled into the next contract. The CFD rollover and expiry guide covers this in detail.

Commission and other charges

Index and commodity CFDs are often commission-free, with costs in the spread. Share CFDs usually carry a commission, either per share or as a percentage of notional, with a minimum per trade. Some providers also list a guaranteed stop premium or market data fees.

Execution and order filling

MetaTrader specifications include fields such as execution mode (market or instant), filling policy (fill or kill, immediate or cancel) and order expiry options. Most retail traders do not need to change these, but if an order is rejected with a filling error, this is where the reason usually lies.

Worked example 1: an index CFD

Illustrative specification, not from any real provider:

• Symbol US500, description "US 500 cash", profit currency US dollars
• Contract size 10, tick size 0.1, so tick value 1.00 dollar per lot
• Minimum volume 0.1 lots, step 0.1
• Retail margin 5%
• Financing: benchmark rate plus 2.5% a year for longs, charged on notional over 360 days; triple financing on Friday

Suppose the index is at 5,000.0 and you buy 0.5 lots.

• Value per index point: contract size 10 × 0.5 lots = 5 dollars per point.
• Notional value: 5,000 × 10 × 0.5 = 25,000 dollars.
• Margin: 5% of 25,000 = 1,250 dollars.
• A 40-point move (0.8%) is worth 40 × 5 = 200 dollars, 16% of the margin.
• One night's financing at an illustrative 4% benchmark plus 2.5%, so 6.5% a year: 25,000 × 6.5% ÷ 360 ≈ 4.51 dollars. On Friday, three nights: about 13.54 dollars.

If you assumed instead that 1 lot meant 1 dollar per point, as it does at some other providers, your 0.5-lot position would actually be ten times larger than you planned.

Worked example 2: a crude oil CFD

Illustrative specification:

• Symbol USOIL, description "WTI crude oil cash", profit currency US dollars
• Contract size 1,000 barrels, tick size 0.01, so tick value 10 dollars per lot
• Minimum volume 0.01 lots, step 0.01
• Retail margin 10%
• Daily trading break of one hour; rolling contract with roll adjustments on published dates

At 75.00 dollars a barrel, you want to risk 300 dollars with a stop 1.50 dollars away.

• Loss per lot at the stop: 1.50 ÷ 0.01 = 150 ticks × 10 dollars = 1,500 dollars per lot.
• Position size: 300 ÷ 1,500 = 0.20 lots, which fits the 0.01 step exactly.
• Notional value: 75 × 1,000 × 0.20 = 15,000 dollars.
• Margin: 10% = 1,500 dollars.

If the result had been 0.237 lots, you would round down to 0.23, never up. The oil trading guide covers what moves the price.

Worked example 3: a share CFD, in a euro account

Illustrative specification:

• A US share CFD, profit currency US dollars, contract size 1 share, tick size 0.01
• Minimum volume 1, step 1
• Retail margin 20%
• Commission 0.02 dollars per share per side, minimum 15 dollars
• Trading hours: underlying exchange hours only

You buy 100 CFDs at 180.00 dollars, and your account is in euros with EUR/USD at 1.0800.

• Notional value: 100 × 180.00 = 18,000 dollars, about 16,667 euros.
• Margin: 20% = 3,600 dollars, about 3,333 euros.
• Commission: 100 × 0.02 = 2 dollars, so the 15-dollar minimum applies on each side: 30 dollars round trip.
• A 1-dollar move in the share is worth 100 dollars, about 92.59 euros at that exchange rate, before any conversion fee.

Note the minimum commission: on a small position it can be a large share of the cost.

A checklist before trading a new instrument

• What is the contract size, and so what is one lot worth per point?
• What is the tick size, and what is the tick value in my account currency?
• What is the minimum size and step, and can I size my position correctly with them?
• What margin do I need, and how does that compare with my free margin?
• When does it trade, in my time zone, and are there daily breaks?
• What does it cost to hold overnight, and which day is the triple charge?
• Does it pay or charge dividends, and does it expire?
• Are there commissions, minimum charges or conversion fees?

Common mistakes

• Copying position sizes between providers. "1 lot of US30" can mean 1 dollar per point at one provider and 10 or more at another.
• Confusing the platform's "point" with an index point. In MetaTrader a point is the smallest increment, which might be 0.01 or 0.1 of an index point.
• Ignoring the profit currency. A DAX position in a US-dollar account has gains and losses in euros, converted at the provider's rate.
• Forgetting the daily break. Stops cannot be executed when the instrument is closed, and the price can gap when it reopens.
• Assuming margin is fixed. Providers can raise margin, especially before weekends, holidays and major events.
• Not noticing an expiry date. A dated CFD will close or roll on a set date, which can catch traders who thought they held a cash CFD.

Frequently asked questions

What is the difference between tick size and tick value?

Tick size is the smallest price change the instrument can make, such as 0.01 or 0.1. Tick value is what that change is worth for one lot, in the profit currency. Tick value equals tick size multiplied by contract size; for example 0.01 × 1,000 barrels = 10 dollars per tick per lot of oil.

Why do two brokers show different prices for the same index CFD?

They may be quoting different contracts (cash versus futures-based), deriving the cash price from futures with different fair value adjustments, or applying different spreads. Small differences are normal. Large ones usually mean one is a dated contract with a different expiry.

How do I find the specification in MetaTrader 5?

Open the Market Watch window, right-click the symbol and select Specification. The window shows contract size, tick size and value, volume limits, margin settings, swap settings including the triple-swap day, and trading sessions in server time.

Why is the margin on my CFD higher than the ESMA limit?

ESMA limits set a minimum margin, not a fixed one. Providers can require more, and often do for volatile or less liquid instruments, for large positions under tiered margin, or temporarily around events and weekends. The specification should state the current rate.

Do contract specifications change?

Yes. Margin, financing markups, trading hours and even contract sizes can change, and holiday hours are temporary changes. Providers usually announce material changes in advance, but it is worth checking the specification again before trading an instrument you have not used for a while.