What Are Contracts for Difference (CFDs)?
CFDs are derivative products that allow you to speculate on price movements of assets like cryptocurrencies without owning the underlying asset. You can trade CFDs similarly to spot assets, but your profit or loss depends solely on price fluctuations.
For example:
- If you predict ETH's price will rise, you can buy an ETH CFD.
- If you expect ETH's price to fall, you sell an ETH CFD.
Key Features:
- ✅ Leverage Trading: Trade with a fraction of the total position value (e.g., 5× leverage means depositing only 20% of the trade value).
- ⚠️ Higher Risk: Potential losses amplify with leverage since P&L is calculated on the full position size.
👉 Learn more about crypto CFDs
Trading CFDs on Crypto.com
Availability
- Trading Hours: 24/7
- Supported Regions: Antigua & Barbuda, Bahamas, Bahrain, Colombia, Egypt, Ghana, Israel, Kenya, Malaysia, Mexico, Nigeria, Philippines, Saudi Arabia, Taiwan, Vietnam, and 50+ other countries.
Setting Up Your CFD Wallet
- Navigate to the Leverage tab → Tap Access CFDs.
- Set up a USD fiat wallet (if not already done).
Review and agree to:
- CFD Terms & Disclosures
- Risk Disclosure Notice
- Confirm setup (takes ≤2 minutes).
Managing Your CFD Wallet
Access via:
- Leverage tab → CFD Wallet section
- Account tab → CFD Wallet
Core CFD Trading Concepts
Long vs. Short Positions
| Position Type | Action | Profit Condition |
|---|---|---|
| Long | Buy CFD | Sell price > Buy price |
| Short | Sell CFD | Buy price < Sell price |
Leverage Rules
Your effective leverage is the lower of:
- Account leverage (default: 5×)
- Instrument-specific leverage
Example:
- Account leverage = 5×, Instrument = 10× → 5× leverage
- Account leverage = 20×, Instrument = 10× → 10× leverage
Executing CFD Trades
Opening a Position
- Select a cryptocurrency (e.g., BTC).
- Choose Buy (bullish) or Sell (bearish).
- Enter amount (must align with contract size intervals).
- Confirm order.
Note: Opposite-direction trades will close existing positions.
Closing a Position
- Tap "X" next to the position → Confirm.
- Partial fills may occur.
Funds & Fees
Deposits/Withdrawals
- Deposit: Transfer USD from fiat wallet → CFD wallet.
- Withdrawal: Subject to max limits based on open positions.
Restrictions Apply During:
- Liquidation events
- Margin calls
Costs
- No commission fees.
- Spreads: Difference between buy/sell prices (varies by asset).
Risk Management
Margin Call
Triggered when: Leverage Health < 2.0 but > 1.0
Actions:
- Deposit more funds OR
- Reduce positions
Liquidation
Triggered when: Leverage Health < 1.0
Process:
- Positions liquidated until balance > used margin.
- 2% liquidation fee applied.
Negative Balance Protection
- Crypto.com may waive deficits if balances stay negative after liquidation.
FAQ Section
Q: What’s the minimum trade amount?
A: Varies by instrument (check contract specs).
Q: How do I view trade history?
A: Account → CFD Wallet → Clock icon.
Q: Why can’t I access my CFD wallet post-setup?
A: Delays may occur; contact support if unresolved after 1 hour.
Q: What does "Outstanding trade processing" mean?
A: A transaction is still executing. Contact support if it persists.