A Perpetual Contract differs from a CFD (Contract for Difference) in five areas: how prices are set, how holding costs are charged, how margin works, when liquidation happens, and which order types are available. If you already trade CFDs, do not apply CFD habits directly to Perpetual Contract trading.

1. 1. Key differences at a glance

2. 2. Price reference

CFD prices come from spot or futures market prices, with options such as spread-based pricing and ultra-low spread pricing. The source of quotes and rollover adjustments (for example, rolling gold futures at expiry) is set by the broker. Customers see one consolidated price.

Perpetual Contracts use three related prices:

• - Last Price: the price of the most recent transaction executed by Vantage on the platform. The order book, candlestick charts and some trigger conditions, such as Conditional Orders, use this price by default.
• - Index Price: a weighted average of gold USD prices from several major spot exchanges. It represents fair market value and is not controlled by any single platform. See Index Price.
• - Mark Price: derived from the Index Price. It is used to calculate Unrealized PnL and to trigger forced liquidation. Even if the Last Price moves temporarily because of short-term liquidity gaps, the Mark Price stays close to the spot price. See Contract Mark Price.
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3. 3. Overnight holding cost: Swap vs Funding Rate

CFD. Holding a CFD position for more than one day incurs an overnight interest charge, called Swap. Swap rates are typically set by the broker from the market interest rate of the underlying asset, and are deducted daily. Long and short positions both pay, although rates differ by direction and sometimes one side receives interest. In some cases rates are fixed and predictable, and a monthly Swap rate schedule is available before trading.

Perpetual Contract. Perpetual Contracts replace Swap with a Funding Rate. The Funding Rate is paid directly between long and short positions at each fixed settlement interval, for example every 8 hours.

Funding Fee = Notional Value × Funding Rate

• - The Funding Rate changes in real time with supply and demand. When the contract price is above the spot price, the rate is positive and longs pay shorts. When it is below, the rate is negative and shorts pay longs.
• - The rate can be positive or negative. If you hold a short position and the rate is positive, you receive a payment.
• - Funding fees apply only if you hold a position at the settlement time.

Example: Gold Mark Price is 3,300 USD, you hold a long position of 1 lot, and the Funding Rate is +0.01%. The fee per settlement is 0.33 USD. With an 8-hour settlement cycle, the average daily cost is about 1 USD. The cost can be many times higher when rates move sharply.

For the full Funding Rate mechanics, see Funding Rate Introduction . For all fees, see Perpetual Contract Fees.

4. 4. Margin modes: Cross and Isolated

CFD. CFDs usually use one account-wide margin mode. All positions share the total account equity, so a loss on one position reduces the margin available for all. The broker measures risk with an account margin ratio. When the ratio falls below the Maintenance Margin level, a Margin Call or forced liquidation is triggered.

Perpetual Contract. Two modes are available, and you choose one before opening each position:

Isolated Margin example: you open a long gold position at 10x leverage for 1 lot, with 330 USD of margin allocated. If this position is fully liquidated, all other funds in the account are unaffected. In Cross Margin mode, the same loss would reduce total account equity and reduce the safety buffer of other positions.

For how to change the mode, see “How to Switch Cross and Isolated Margin” .

5. 5. Liquidation: trigger logic

CFD. CFDs measure risk with the account’s overall margin utilisation. When Account Equity divided by Used Margin falls below the Maintenance Margin ratio, a Margin Call is triggered. Further deterioration leads to full or partial forced liquidation. The broker sets the thresholds, which are usually percentages, for example “Margin Call triggered below 50%, forced liquidation below 20%”.

Perpetual Contract. Liquidation is based on each position’s Maintenance Margin Rate (MMR). Forced liquidation is triggered at the 100% MMR threshold (written “MMR ≤ 100%” in the source; see Reviewer notes). The liquidation price is calculated with a formula, so you can estimate the threshold before you open a position. The position screen shows the current distance from the liquidation price in real time.

For the calculation, see “How to Calculate the Liquidation Price of a Perpetual Contract”.

6. 6. Order types

CFD. CFDs typically support market orders, limit orders, take profit orders and stop-loss orders. Some brokers also support OCO (One Cancels the Other) orders.

Perpetual Contract. Commonly supported order types include:

For the order type guides, see the Perpetual Trading Order Types section of the help center.