CFD vs Futures Trading on Exness Philippines

Understanding CFD vs Futures Trading Fundamentals

Contract for Difference (CFD) and futures are two different derivative instruments available on our Exness platform in Philippines. CFDs enable trading on price changes without owning the base assets. Futures contracts require buying or selling assets at set prices on fixed dates. Our platform offers both with competitive spreads and execution speeds under 0.1 seconds.

CFDs provide flexible lot sizes starting from 0.01 on major forex pairs. Futures have standardized contract sizes set by exchanges. Exness supports over 120 CFD instruments including currencies, indices, and commodities. Futures cover energy, agricultural commodities, and precious metals on MT4 and MT5.

The main difference is in contract terms and settlement. CFDs settle daily with automatic rollovers. Futures expire on specific dates needing closure or delivery. We offer stop loss, take profit, and negative balance protection tools for both.

Platform Access and Account Setup Process

Residents in Philippines can register on Exness in 5-15 minutes. Visit exness.com, click Register, and enter your Philippines address and active phone number. Create a secure password. Upload valid ID documents for verification, which takes up to 24 hours.

Document Verification Requirements

Submit clear images of your Philippine passport, driver’s license, or national ID. Provide proof of address such as utility bills or bank statements dated within three months. Avoid blurred or shadowed photos. Verification operates on Manila business time (GMT+8).

Complete the risk profile questionnaire. Choose account types: Standard with spreads from 0.3 pips; Pro with spreads from 0.1 pips plus commission; Raw Spread with zero spreads and commission fees.

Funding Your Trading Account

Fund accounts starting at $10 via local banks, credit cards, or popular Philippine e-wallets. Deposits through e-wallets are instant; bank transfers take 1-3 business days. Funds auto-convert to your chosen base currency at live rates.

CFD Trading Mechanics and Execution

CFD trades stay open until manually closed. Overnight financing applies for positions held past market close; longs pay debit interest, shorts may earn credit. Our swap calculator shows exact fees before you trade.

Leverage reaches 1:2000 for major forex and up to 1:200 for indices. Leverage adjusts dynamically based on equity and trade size. Professional traders can request higher leverage after approval.

We aggregate prices from multiple liquidity providers delivering real-time quotes with millisecond precision. Market depth displays available liquidity at various price points. Execution prioritizes price improvement where possible.

CFD assets include:

• Forex: 49 major and minor pairs with spreads from 0.0 pips
• Stock indices: 11 global indices like Nikkei 225, Hang Seng
• Commodities: Gold, silver, oil, agricultural products
• Stocks: Over 50 US and European companies
• Cryptocurrencies: Bitcoin, Ethereum, others

Futures Contract Specifications and Settlement

Futures contracts follow exchange rules on size, tick value, and expiration months. We provide CME, ICE, and global exchange access. Standard expirations include March, June, September, December. Traders must close or roll positions before first notice day to avoid delivery.

Margin Requirements and Position Limits

Margins depend on contract volatility and use SPAN margining. Maintenance margins trigger margin calls when breached. Position limits prevent oversized holdings. Our system monitors large trader positions for compliance automatically.

Contract Rollover and Expiration Management

We notify traders 5 days before futures expiry. Options include closing, rolling to next month, or cash settlement. Our rollover calculator estimates cost or credit from contract month differences. Physical delivery applies for some commodities; clearing house handles logistics.

Risk Management Tools and Controls

Exness platform includes automated risk tools for CFDs and futures. Stop loss and take profit orders execute at preset levels. Guaranteed stop losses prevent slippage within normal markets. Trailing stops adjust stops dynamically with price movement.

Position Sizing and Exposure Limits

Use our risk calculator to size trades based on equity and risk percentage. Limit maximum risk per trade to 2% of balance. Exposure limits prevent excessive concentration across correlated assets.

Negative Balance Protection

Retail accounts have automatic negative balance protection, preventing losses beyond deposits. Professional accounts can enable this option in settings. Margin levels are monitored continuously to avoid deficit balances.

• Max position sizes linked to equity
• Correlation limits for related instruments
• Daily loss limits halting trading at thresholds
• Margin call at 50% margin level
• Auto position closure at 20% margin level

Trading Platform Features and Tools

Exness supports MT4 and MT5 platforms for CFDs and futures using one interface. Features include custom indicators, expert advisors, and automated scripts. Platforms sync data across desktop, web, and mobile. Servers provide 99.9% uptime with redundant global connections.

Chart Analysis and Technical Indicators

More than 80 indicators available including moving averages and oscillators. Chart timeframes range from 1-minute to monthly. Drawing tools include trend lines and Fibonacci retracements. Chart templates save automatically for convenience.

Market depth shows order book levels with Level II data displaying bid/ask sizes. Tick charts provide individual price movements with millisecond timestamps. Historical data is available for backtesting up to 10 years.

Order Types and Execution Methods

Supported orders: market, limit, stop, conditional, OCO, and if-done. Partial fills and order modifications are seamless. Execution includes instant, market, and exchange execution for futures. Orders route to best liquidity minimizing slippage.

Cost Structure and Fee Comparison

CFD costs include spreads, overnight financing, and currency conversions. Raw Spread accounts charge commissions instead of spreads. Futures involve exchange, clearing, and regulatory fees passed transparently.

Volume discounts apply to frequent futures traders, lowering per-contract fees. Fee schedules update quarterly reflecting market changes. All costs show before trade confirmation.

Financing and Swap Calculations

CFD swaps depend on interest differentials plus margin fees. Positive swaps credit accounts; negative ones debit. The swap calculator shows precise amounts for any position and duration.

Futures embed financing in contract prices, so no separate overnight fees occur. Forward curves display contango or backwardation states. We provide charts showing price relations across contract expirations.

Regulatory Environment and Client Protection

Exness operates under multiple regulations ensuring client safety in Philippines. We keep client funds in segregated accounts at tier-1 banks. Monthly fund segregation reports are published. Insurance covers operational risks and cyber threats.

Dispute Resolution and Support Services

Customer support works 24/5 during trading hours, with dedicated Philippine teams. Disputes follow transparent processes. Educational materials include webinars, courses, and market reports on CFD vs Futures.

Demo accounts with virtual funds are available for practice. Our research team issues daily market analysis covering economic events affecting both markets.