What are crypto CFDs?

A crypto CFD (contract for difference) is an agreement to exchange the price difference in a cryptocurrency between opening and closing the contract. You never own the coin, and you can go long or short. Before comparing providers, check product eligibility in your country and the margin requirements that apply to you.

The Rock Trading · Updated 30 September 2026

Crypto CFD margin and profit calculator

USD example · Linear contract · Hypothetical prices

Units represent coin-equivalent exposure, not broker lots. Use execution prices that already include the spread; additional costs must exclude that spread. All values use USD.

Worked example: a long position of 0.1 units, entered at USD 60,000 and closed at USD 63,000, with 2:1 leverage and USD 20 in additional costs. The results below use these hypothetical values. Interactive inputs become available when JavaScript loads.

Full position value: USD 6,000.00
Initial margin estimate: USD 3,000.00
Profit / loss before extra costs: USD 300.00
Profit / loss after extra costs: USD 280.00
Net return on initial margin: 9.33%

Initial margin = entry price × units ÷ leverage. Long profit/loss = (exit − entry) × units; a short position reverses the price difference. Net profit/loss deducts additional costs.

This is an illustration, not a broker quote or a liquidation forecast. Actual margin requirements and contract sizes vary. It excludes currency conversion, financing credits, and automatic margin close-out; a real position may close before the hypothetical exit price. Initial margin is not a maximum-loss limit.

How crypto CFDs work

A CFD is an over-the-counter contract with a provider, so you never own the underlying coin. You are long, benefiting from a rise, or short, benefiting from a fall, before costs. The calculator uses coin-equivalent units, whereas brokers may quote lots with differing specifications. See Moneysmart.

Crypto CFDs versus buying crypto

CFDs versus unleveraged spot crypto
Aspect	Crypto CFD	Unleveraged spot purchase
What you hold	A cash-settled contract with a provider	The cryptocurrency itself
Wallet and transfers	No transferable coins at any point	Can be held in exchange custody or withdrawn to your own wallet
Cost categories	Spread, commissions where charged, overnight financing	Trading and withdrawal fees set by the exchange, plus market execution costs: bid/ask spread and slippage from price changes or multi-level order-book fills (Kraken glossary).

To compare exchanges for holding coins directly, see our crypto exchange comparison.

Margin is not a loss limit

At a fixed coin-equivalent exposure, leverage changes your initial margin, not the gross profit or loss from a given price move. Losses can exceed the initial margin, and account close-out rules apply. Australian retail negative balance protection caps losses at the CFD account balance. See Moneysmart.

Hypothetical example using educational inputs, not current prices: 0.1 coin-equivalent units, $60,000 entry, 2:1 leverage, $20 additional costs. Notional exposure is 0.1 × $60,000 = $6,000; initial margin is $3,000. If the exit is $63,000, gross long P/L is 0.1 × $3,000 = $300, net $280 — a 9.33% return on initial margin. If the price instead falls to $57,000, the position loses $300 gross, or $320 net.

Costs and execution

The main costs are the spread, commissions where the provider charges them, and overnight financing for positions held open. If you use actual execution prices (bid and ask), the spread is already embedded — don't deduct it twice. Financing and commissions belong in the calculator's extra-costs input. Ordinary stop orders are not guaranteed exit prices, and providers may schedule trading closures; slippage and hours depend on provider terms (IG Australia). The calculator above does not model close-outs, FX conversion, inverse contracts or financing credits.

Crypto CFD rules in Australia and the UK

In Australia, an ASIC product intervention order caps crypto-asset CFD leverage for retail clients at 2:1, meaning at least 50% initial margin (ASIC 20-254MR), and that order runs to 23 May 2027 (ASIC 22-082MR). Availability depends on your jurisdiction and client classification, and this cap is a rule, not a recommended leverage. Separately, UK-authorised firms are prohibited from selling, marketing or distributing cryptoasset derivatives, including crypto CFDs, to retail clients under FCA Handbook COBS 22.6.5 — this restriction covers derivatives, not all crypto assets. A brand's regulator list does not establish eligibility for every product, entity or country.

What to check next

Before comparing providers, check the legal entity you would deal with, product availability in your jurisdiction, contract units, total costs and close-out rules in the current terms. For the practical trading workflow see our guide to cryptocurrency CFD trading; for providers, our crypto CFD comparison; for how we assess them, our methodology.

General information only, not personal financial advice.