A contract for difference is a leveraged product concept. This page explains general terminology and risk without publishing final BironMarkets trading conditions.
High-risk warning: CFDs and leveraged products are high risk. Leverage can magnify both gains and losses, and a user may lose some or all capital committed to a position.
1. What a CFD represents
A CFD is an agreement whose value changes with the price movement of a referenced market. It provides price exposure without ownership of the underlying asset. Holding a CFD on a share, metal or currency pair does not make the user the owner of that underlying asset.
2. Long and short exposure
Long exposure generally benefits when the referenced price rises and loses when it falls. Short exposure generally behaves in the opposite direction. Either direction can produce a loss, and neither is recommended here.
3. Bid, ask and spread
The bid is the displayed sell-side price and the ask is the displayed buy-side price. The spread is the difference between them. A position starts relative to the side of the quotation used to open it, so transaction-cost concepts matter before any favourable movement occurs.
4. Contract size and volume
Contract size describes the market quantity represented by one contract or lot. Volume describes how many units are selected. Their interpretation depends on an instrument specification. The prototype does not publish final BironMarkets contract sizes or permitted volumes.
5. Margin, leverage and floating P&L
Margin is the amount allocated to support leveraged exposure. Leverage means that market exposure may be larger than the committed margin, which magnifies both favourable and adverse movement. Floating profit and loss is the current illustrative change in value of an open position; it can move rapidly and is not a realised result.
6. Trading-cost concepts
Common CFD cost concepts include spread, commission, overnight swap or financing, and currency-conversion costs. The way these apply varies by product, account and provider. Final BironMarkets spreads, commissions, swap rates, conversion methods, margin-close rules and leverage terms remain pending and are not stated here.
7. Volatility, liquidity and gap risk
Volatility can produce rapid price movement. Lower liquidity can widen spreads or reduce the prices available for execution. A gap can move from one available price to another without trading at every intervening level. These conditions can increase loss and can prevent a stop instruction from executing at its requested price.
8. Illustrative demo quotations
All quotations in this prototype are educational local examples. A move of the same size in opposite directions would create opposite profit-and-loss effects for a given exposure, before costs; the favourable and adverse cases must be considered together.
The examples on this page are educational and illustrative. They are not live quotations, personal advice, a recommendation or an offer.
9. Final product specifications remain pending
No value shown here is a final BironMarkets product specification. Review the implemented Markets overview, Forex and Metals pages for public educational context, and the Risk Disclosure for a broader draft risk explanation.