Educational content. This article defines the index CFD and explains the difference between cash-priced and futures-priced index contracts. It does not constitute investment advice or a recommendation. CFD trading carries significant risk of loss and may not be suitable for all investors.
An index CFD is a cash-settled contract that pays or charges the change in a stock index level, without owning any shares. It comes in two pricing types: a cash index CFD follows the index itself and never expires, and a futures-based CFD follows one dated futures contract and is rolled to the next one at expiry. At Vanto, one lot of an index CFD is worth 1 currency unit per index point.
This article defines the instrument, compares the two pricing types, calculates the futures basis and the size of a roll gap, and shows how to check which type a symbol is on MT5. The figures are arithmetic and feed data, not forecasts.
What Is an Index CFD?
An index CFD is a contract for difference whose underlying is a stock index such as the S&P 500 or the DAX. The contract pays or charges the difference between the opening and closing index level, multiplied by the contract size and the number of lots. No shares, no index units and no futures contract change hands.
The profit or loss on a position is:
Profit or loss = (closing level - opening level) x contract size x lots, for a long position, with the sign reversed for a short.
The contract size comes from the instrument specification. In the Vanto feed snapshot of 10 October 2026, every one of the 18 index instruments has a contract size of 1. One lot is therefore worth one unit of the quote currency per index point. A 50-point rise in US500 on 1 lot is a gain of USD 50, and the same fall is a loss of USD 50. The general concept is covered in what is a CFD and what is contract size in trading.
Because the position is a CFD, it needs only margin, not the full value of the index exposure. Vanto's maximum leverage on indices is 1:100, and the margin call level is 100% with stop-out at 50%. Leverage amplifies losses as well as gains. See what is leverage in trading and what is margin in trading.
Cash Index CFD vs Futures Index CFD: What Is the Difference?
A cash index CFD is priced from the index level itself, while a futures index CFD is priced from one specific futures contract. Both are cash-settled and both are leveraged. The difference is in the reference price, and that difference drives expiry, cost structure and trading hours.
| Feature | Cash index CFD | Futures-based index CFD |
|---|---|---|
| Reference price | The index level, built from its constituents | One dated futures contract on the index |
| Expiry | None | Yes, at the futures expiry date |
| Roll to next contract | Not needed | Yes, by the broker, with a possible price gap |
| Basis (futures minus cash) | Not present | Built into the price, shrinks to zero at expiry |
| Overnight financing | Charged as swap | Often none, because interest is inside the futures price |
| Dividends | Credited to longs and debited from shorts as an adjustment | Usually none, because dividends are inside the futures price |
| Trading hours | Follows the cash market, with prices outside hours derived from futures | Often nearly round the clock, as the futures market is |
| Price level vs the index | Equal to the quoted index | Differs by the basis |
The rows on financing, dividends and hours are tendencies, not rules. Each broker publishes its own terms, and the symbol specification is the authority. The point of the table is the mechanism: a cash CFD charges its carry costs openly as swap and dividend adjustments, while a futures-based CFD carries the same economics inside the quoted price.
A broader comparison of CFDs with ETFs, futures and stocks is in CFD index trading. This article stays on the pricing difference between the two CFD types.
What Is the Basis Between a Futures Price and the Cash Index?
The basis is the futures price minus the cash index level, and it equals roughly the interest cost of holding the index minus the dividends it pays, over the time left to expiry. This is the cost-of-carry relationship. A holder of the shares pays financing but collects dividends. A futures holder does neither, so the futures price adjusts to remove the difference.
Futures price = cash level x (1 + (interest rate - dividend yield) x days left / 365)
A worked example with illustrative inputs, not market data. The cash index stands at 20,000 points, the financing rate is 4% a year, and the index dividend yield is 2% a year.
- Interest over 90 days: 20,000 x 0.04 x 90 / 365 = 197.26 points
- Dividends over 90 days: 20,000 x 0.02 x 90 / 365 = 98.63 points
- Futures price: 20,000 + 197.26 - 98.63 = 20,098.63 points
- Basis: 98.63 points
The basis falls as expiry approaches, because less time is left to carry:
| Days to expiry | Basis (points) | Futures price (points) |
|---|---|---|
| 90 | 98.63 | 20,098.63 |
| 60 | 65.75 | 20,065.75 |
| 30 | 32.88 | 20,032.88 |
| 5 | 5.48 | 20,005.48 |
| 0 | 0 | 20,000.00 |
The cash level is held fixed at 20,000 in the table to isolate the basis. In practice the cash level moves, the interest rate and dividend forecasts change, and the real basis can be above or below this formula. The mechanism is what matters: a positive basis exists when interest exceeds dividends, and it decays to zero at expiry because on that day the futures settles to the cash index.
What Happens When a Futures-Based CFD Rolls Over?
When a futures-based CFD reaches expiry, the broker moves the quote from the expiring contract to the next one, and the price can jump by the difference between the two basis values. That jump is not a market move. It is the change of reference contract.
Continuing the example, the cash index is still 20,000. The expiring contract has 5 days left and the next contract has 95 days left:
- Expiring contract: 20,000 + 5.48 = 20,005.48 points
- Next contract: 20,000 + (20,000 x 0.02 x 95 / 365) = 20,104.11 points
- Roll gap: 20,104.11 - 20,005.48 = 98.63 points
On a chart of the CFD, the line steps up by 98.63 points although the cash index has not moved. With a contract size of 1, a position of 1 lot sees 98.63 currency units of quoted difference per lot. Brokers handle this differently. Some credit or debit the difference to the account so that open profit is not distorted, and some do not. The terms of the specific symbol say which applies. A stop-loss or pending order placed at a fixed level should be reviewed around a roll, because the number on the order stays the same while the market has stepped by the gap.
A cash index CFD has no such event. Its cost of carry arrives as a daily charge instead, which is the next point.
How Do Cash Index CFDs Charge the Cost of Carry?
A cash index CFD charges the cost of carry openly: a daily swap for holding the position, and a dividend adjustment on the ex-dividend dates of the index constituents. Nothing is hidden in the price, because the price is the index.
In the Vanto feed snapshot of 10 October 2026, the long swap on all 18 index instruments is a debit, and the short swap is a credit on 8 of them and a debit on the other 10. This is the sign pattern only. Rates change, so check the current figure in the specification before a position is held overnight. For the mechanism of swap and why it can be positive for a short, see what is swap in trading. Every index instrument books its triple swap on Friday, as explained in what is triple swap day.
Dividend adjustments work in the opposite direction to the swap on a long position: a long is credited and a short is debited, because the share holder would have received the dividend. A cash CFD therefore shows interest and dividends as two separate lines. A futures-based CFD nets them into the basis, which is why it often shows no swap and no dividend line at all. The per-index dividend figures are shown on the indices page and a worked example for one index is in how to trade the S&P 500.
Index CFD Specifications in the Vanto Feed
The specification of an index CFD fixes the quote currency, contract size and lot limits, and these differ more by index than the pricing type does. The table below is built from the live feed.
| Symbol | Quote currency | Contract size | Min lot | Lot step | Max lot | Short swap sign |
|---|---|---|---|---|---|---|
| AUS200 | AUD | 1 | 0.01 | 0.01 | 100 | Credit |
| CHNHS | HKD | 1 | 0.01 | 0.01 | 100 | Debit |
| CN50U | USD | 1 | 0.01 | 0.01 | 100 | Credit |
| DE40 | EUR | 1 | 0.01 | 0.01 | 100 | Debit |
| ES35 | EUR | 1 | 0.01 | 0.01 | 100 | Debit |
| FR40 | EUR | 1 | 0.01 | 0.01 | 100 | Debit |
| HKG50 | HKD | 1 | 0.01 | 0.01 | 100 | Credit |
| JP225 | JPY | 1 | 1 | 1 | 1,000 | Debit |
| NL25 | EUR | 1 | 0.01 | 0.01 | 100 | Debit |
| SGP20 | SGD | 1 | 0.01 | 0.01 | 100 | Debit |
| STOXX50 | EUR | 1 | 1 | 1 | 1,000 | Debit |
| SWI20 | CHF | 1 | 1 | 1 | 100 | Debit |
| UK100 | GBP | 1 | 0.01 | 0.01 | 100 | Credit |
| US100 | USD | 1 | 0.01 | 0.01 | 100 | Credit |
| US2000 | USD | 1 | 1 | 1 | 100 | Credit |
| US30 | USD | 1 | 0.01 | 0.01 | 100 | Credit |
| US500 | USD | 1 | 0.01 | 0.01 | 100 | Credit |
| VIX | USD | 1 | 10 | 1 | 1,000 | Debit |
Source: Vanto feed snapshot, 10 October 2026. The long swap is a debit on every row. Swap amounts are not shown because they change.
Two things follow from the table. First, the minimum position differs: JP225, STOXX50, SWI20 and US2000 start at 1 lot and VIX at 10 lots, while most indices start at 0.01 lot. Second, the currency of profit is the quote currency of the index, so a position on DE40 earns and loses in euros and on JP225 in yen, then converts to the account currency. The table does not show whether a symbol is cash-priced or futures-priced, because the feed carries no expiry field. That is read from the platform, as the next section shows.
Worked example of the size of a minimum position, using the same snapshot: 0.01 lot of US500 at a quote of 7,820.77 controls 0.01 x 1 x 7,820.77 = USD 78.21 of index value, and each 1-point move is worth USD 0.01. One lot of JP225 at 68,937.4 controls JPY 68,937 of index value, and each 1-point move is worth JPY 1.
How Can You Tell Whether an MT5 Symbol Is Cash or Futures?
Open the symbol's Specification window in MT5 and read four things: the description, the expiration date, the trading sessions and the swap and dividend terms. Together they identify the pricing type without guessing.
- Description and name. Futures-based symbols often carry a contract month or a marker in the name or description. A plain index name usually signals a cash-priced symbol, but this is a convention, not a guarantee.
- Expiration. A symbol with an expiration date is a dated contract. A symbol without one does not expire.
- Trading sessions. A symbol that quotes through the night with no break when the exchange is closed is probably referenced to a futures market. A symbol with the hours of one exchange follows a cash market.
- Swap and dividend terms. A symbol with a swap and dividend adjustments carries its carry costs openly. A symbol without them carries them inside the price.
On the first and the last point the conclusion is a hint, so read the broker's contract specification or ask support when the position is large. The mechanics of lots and order entry are in what is a lot and how to trade indices.
Common Mistakes With Index CFD Pricing
Most pricing errors come from comparing a number from one source with a number from another source, when the two sources reference different things.
- Reading levels from a futures chart onto a cash CFD. A level on a futures chart sits above or below the cash index by the basis. A support line at 20,100 on a futures chart is about 20,000 on a cash chart in the example above.
- Treating a roll gap as a market move. A step in a continuous futures chart on the roll date is the change of contract, not a signal.
- Comparing costs between types by swap alone. A futures-based CFD with no swap still pays for carry through the basis. A cash CFD with a swap pays for it through the swap. The cost comparison needs both.
- Ignoring dividend adjustments on shorts. A short on a cash index CFD is debited on ex-dividend dates, which can offset a positive swap credit.
- Holding a pending order across a roll. The order level is fixed while the reference price steps. Review orders before a known expiry.
- Assuming one lot is the same exposure everywhere. The table above shows lots of 0.01, 1 and 10 as minimums, and the index level itself differs by a factor of thousands between instruments.
Frequently Asked Questions
Is an index CFD based on futures or on the cash index?
It depends on the symbol, and the broker's specification states which. Both types exist in the market. A cash index CFD follows the index level and has no expiry, and a futures-based CFD follows a dated contract. Check the expiration field and the swap terms in MT5.
Do index CFDs expire?
A cash index CFD does not expire, and a futures-based index CFD does. The futures-based type is moved to the next contract at the underlying expiry, and the price can step by the roll gap. Always read the specification of the symbol you trade.
Why is the index CFD price different from the index I see on the news?
A futures-based CFD differs from the quoted index by the basis, which is roughly interest minus dividends over the time left. In the worked example with 90 days left, the difference was 98.63 points on a 20,000-point index. A cash CFD should stay close to the index, apart from the spread.
Do index CFDs pay dividends?
No, a CFD holder receives no dividend, and the adjustment replaces it. On a cash index CFD, longs are credited and shorts are debited on ex-dividend dates. On a futures-based CFD the dividend effect is already inside the futures price.
How much does one lot of an index CFD control?
One lot controls the index level times the contract size. With a contract size of 1, one lot of US500 at 7,820.77 controls USD 7,820.77, and each index point is worth USD 1. Leverage of 1:100 means margin is a fraction of that value, while losses still follow the full exposure.
Why do some index CFDs have a minimum of 1 lot instead of 0.01?
The minimum lot is part of each instrument's specification and is set per symbol. In the 10 October 2026 snapshot, JP225, STOXX50, SWI20 and US2000 start at 1 lot, and VIX at 10 lots. The minimum can differ from the usual 0.01 because of the index level or the contract design.
Check the Specification Before You Size the Position
The index level, contract size, lot limits and swap terms decide what a position costs and how much it moves per point. Enter the symbol, lot size and account currency in the trading calculator to see the margin and the value of one point before opening a trade.
Risk warning. Trading securities, futures, options, and contracts for differences are complex financial instruments that require knowledge and understanding. Prices can fluctuate significantly and securities may become valueless. Investors may incur losses exceeding the potential for profits. Trading on margin can result in losses greater than the amount initially deposited. Past performance is not necessarily a guide to future performance. The information in this article is for educational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any financial instrument. Consider whether CFD trading is appropriate for your circumstances and seek independent advice if necessary.