---
title: "Contract for difference Meaning - Get Funded Now"
description: "An agreement to exchange the difference in an instrument's price between opening and closing a position. It gives exposure to the move without ownership…"
url: "https://getfundednow.com/glossary/contract-for-difference"
language: "en"
last_modified: "2026-09-22"
publisher: "Get Funded Now (getfundednow.com)"
translations:
  es: "https://getfundednow.com/es/glossary/contract-for-difference"
  pt-BR: "https://getfundednow.com/pt-br/glossary/contract-for-difference"
  fr: "https://getfundednow.com/fr/glossary/contract-for-difference"
  it: "https://getfundednow.com/it/glossary/contract-for-difference"
  de: "https://getfundednow.com/de/glossary/contract-for-difference"
disclosure: "All trading at Get Funded Now is simulated. 'Funded' means a simulated or virtual account; GFN is not a broker and does not hold client funds."
---

Instruments and markets

# Contract for difference

An agreement to exchange the difference in an instrument's price between opening and closing a position. It gives exposure to the move without ownership of the underlying asset.

Also called: CFD

GFN’s figure

On a GFN simulated account, contracts of every type are modelled with real conditions - spreads, commission of $3.50 per side, $7 per lot round turn and execution differences - and no customer order is executed in a live market.

In detail

## Contract for difference, explained

CFDs are how most retail platforms offer indices, commodities and crypto: one instrument type, one margin model, one set of mechanics across very different underlying markets.

Positions carry financing for as long as they are open and have no expiry, which is the main structural difference from a futures contract.

[Rules handbook](https://getfundednow.com/rules) · [Indices at GFN](https://getfundednow.com/instruments/indices) · [Crypto at GFN](https://getfundednow.com/instruments/crypto) · [More instruments and markets](https://getfundednow.com/glossary/category/instruments)

Related

## Terms that come with it

Most rules only make sense next to the ones they interact with. These are the entries this one depends on.

- [Underlying](https://getfundednow.com/glossary/underlying) - The asset a derivative's price is derived from - the index behind an index contract, the barrel of oil behind an oil contract. You trade the derivative; the underlying sets its price.
- [Swap](https://getfundednow.com/glossary/swap) - The financing charge or credit applied to a position held past the daily rollover. It reflects the interest rate difference between the two sides of the pair and can be positive or negative.
- [Simulated account](https://getfundednow.com/glossary/simulated-account) - An account that reproduces live market conditions - prices, spreads, commission, slippage - without routing orders to a market. Every GFN evaluation and funded account is one, and no customer capital is ever exposed.
- [Leverage](https://getfundednow.com/glossary/leverage) - The ratio between the notional size of a position and the margin required to hold it. At 1:50, $2,000 of margin supports a $100,000 position - it changes what you can open, not what you may lose.

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Source: https://getfundednow.com/glossary/contract-for-difference
Facts about Get Funded Now in one file: https://getfundednow.com/llms.txt