fbSynthetic Futures | CFD Futures | CFD Futures Trading | IFCM
IFC Markets Online CFD Broker

Synthetic Futures - CFD Futures Trading

Synthetic Futures

CFD Futures Trading

Recently, along with trading in the foreign exchange market, a growing number of clients are interested in making profits by trading Index, Commodity and Stock CFDs. IFC Markets, being one of the leading providers of CFD trading, has developed a special instrument (CFD type), having the form of continuous futures contract that allows clients to trade without an expiration date. This is a significant advantage compared to trading futures with dates of expiration.

Synthetic Futures

Synthetic futures contract is formed of general futures contracts on one underlying asset, so that at completion of one futures contract and transfer to the next one the price of a synthetic instrument has no gaps and simultaneously reflects correctly the dynamics of the underlying asset prices. Trading history since the beginning up to the current rates is displayed in real time on the charts in the trading terminals. IFC Markets grants clients an opportunity to trade Commodity and Index synthetic futures. It is important to note that the principle of building futures differs for each group of instruments.

Index Futures

Index CFDs, such as DJI, SP500, Nd100, DE 30, FR 40, GB 100 and NIKKEI are calculated uninterruptedly without an expiration date on the basis of the nearby futures on corresponding stock indexes:

«The instrument quote» = «Quote of the nearby liquid future» - «The deviation of the future price from the index value».

Commodity Futures

For Commodity CFDs the calculation is different. For example, the instrument OIL is calculated uninterruptedly, without an expiration date, on the basis of two nearby futures on Light Sweet Crude Oil by using the following formula:

OIL = F1 x T1 / T + F2 x (T - T1) / T, where:

F1 – quote of the nearby liquid futures contract
T — nominal time between the expiration dates of two futures
T1 – time remaining until the expiration of the futures contract (F1)
F2 – quote of the liquid futures contract following the first futures

So, all instruments of the group CFD Commodities are calculated uninterruptedly without an expiration date, based on the two nearby liquid futures.

Trade continuous Futures Contracts provided by IFC Markets:Index Futures   Commodity Futures