When comparing charts on CFD platforms and traditional investment platforms, discrepancies can often leave traders puzzled. These differences arise due to variations in how each platform operates, including the way prices are calculated and displayed. CFD platforms, which are primarily used for speculative trading, often incorporate elements like spreads and synthetic pricing, while investment platforms focus on reflecting direct market prices. Additionally, factors like trading hours, data feeds, and platform-specific adjustments can further contribute to the differences, making it essential for traders to understand the context behind each chart.

1. Pricing Models

  • CFD Charts:
    • CFDs typically use bid and ask prices, meaning the chart displays prices that include spreads (the difference between the buying and selling price).
    • Prices may reflect the broker’s specific spread adjustments or liquidity provider variations.
  • Investment Platforms:
    • Charts on investment platforms often show the actual market price based on trades executed in the underlying market (e.g., stock exchanges).
    • These prices are more straightforward and reflect the raw market movements.

2. Timeframes and Data Sources

  • Different platforms may use slightly varying data feeds or time zones to calculate price candles (e.g., opening and closing times for a trading day).
    • CFDs may offer extended trading hours or prices derived from after-hours trading.
    • Investment platforms generally adhere to the official market hours of the asset’s primary exchange.

3. Broker-Specific Adjustments

  • Some CFD brokers make adjustments to reflect leverage or margin requirements, while investment platforms display the direct market price.
  • CFD brokers may also adjust their charts to include rollover fees or dividend impacts for indices and commodities.

4. Chart Intervals and Granularity

  • CFDs often offer more customizable intervals for day traders, such as tick charts, which can cause discrepancies compared to the standard daily, weekly, or monthly intervals shown on investment platforms.

5. Asset Types

  • Synthetic Prices: CFDs sometimes use synthetic pricing derived from multiple sources or future contracts, while investment platforms use the direct price of the underlying asset.

The differences in how charts are displayed between CFDs and investment platforms often boil down to pricing models, trading hours, data feeds, and platform-specific customizations. To get a better understanding, compare the chart settings, such as time zones, intervals, and the specific assets being monitored

Related article: What is a Trailing Stop Loss? How to use it