Risk Warning: CFDs and spread bets are complex instruments and come with a high risk of losing money rapidly due to leverage.
Approximately 80% of retail client accounts lose money when trading in CFDs and spread bets.
You should consider whether you understand how CFDs and spread bets work and whether you can afford to take the high risk of losing your money.

How can I start trading CFDs?

Lunaro Trading Team
14/02/2026

You can start trading in CFDs by submitting an application for a trading account. Once your application is approved, you can trade the product(s) of your choice by searching for them on the platform and executing trades via our web, desktop, or mobile platforms.

Is trading CFDs considered safe?

Lunaro Trading Team
14/02/2026

CFDs are complex and high-risk products due to their speculative nature and leverage.

How can I use CFDs for hedging purposes?

Lunaro Trading Team
14/02/2026

You can use CFDs to hedge your other holdings by opening a short position with a CFD on the same asset you already own. If the market drops, the gain on the CFD can help offset the loss on your holding.

What is the difference between CFDs and futures?

Lunaro Trading Team
14/02/2026

CFDs are traded over-the-counter with your broker, have no expiry date, offer flexible position sizes, but can become more expensive over time because of overnight financing costs.

Futures are traded on an exchange, are fully standardised in size and expiry, must be closed or rolled over when the expiry date arrives, usually have lower long-term costs, but are less flexible and often require more capital.

Do CFDs have an expiration date?

Lunaro Trading Team
14/02/2026

CFDs are good till cancelled, meaning they roll over nightly until the trade is closed. They do not have an expiry date unless otherwise stated, which can be the case with CFD futures and CFD forwards.

What exactly is a CFD?

Lunaro Trading Team
14/02/2026

A Contract for Difference (CFD) is a derivative that allows you to speculate on the rise and fall in the price of an underlying market such as shares, FX, commodities, or indices, without taking ownership of the actual asset.

How do I make a profit or incur a loss on a CFD?

Lunaro Trading Team
14/02/2026

Your profit or loss is based on the difference between the price you open and the price you close your CFD position. If the market moves in your favour, you shall profit; if it moves against you, you lose. Any additional costs, such as financing charges, swap rates, or currency conversion effects, are also subtracted from your overall profit or loss on the position.

Do I own the underlying asset when trading CFDs?

Lunaro Trading Team
14/02/2026

No, you do not own the underlying asset when trading a CFD.

What are the main risks of trading CFDs?

Lunaro Trading Team
14/02/2026

CFDs expose you to market risk, leverage risk, counterparty risk, volatility and gapping, margin call risk, and liquidity risk. Because CFDs are leveraged products, losses can exceed your initial deposit.

What is a pip in CFD trading?

Lunaro Trading Team
14/02/2026

A pip is the tradable point in CFD trading. This means your position size correlates to the pip value you change, e.g., one standard lot of FTSE equals £10 per pip movement. If the market moves 5 pips, this is a profit or loss of £50.