Getting Started with Event Contracts CFD
Learn the fundamentals of trading Event Contracts CFD, from account setup to placing your first trade.
What are Event Contracts CFD?
Event Contracts CFD are derivative instruments that allow traders to speculate on the outcome of real-world events without owning the underlying asset. These contracts derive their value from specific events such as economic data releases, political outcomes, sports results, or market milestones.
Unlike traditional CFDs that track asset prices, Event Contracts settle based on whether a specific event occurs or a particular outcome is achieved. This creates unique trading opportunities based on your analysis of event probabilities rather than price movements alone.
Key Advantages
Defined Risk
Know your maximum potential loss upfront. Event Contracts have capped risk, making position sizing straightforward.
Diverse Markets
Trade on economic indicators, political events, cryptocurrency milestones, and more - all from one platform.
Short-Term Opportunities
Many Event Contracts have defined expiration times, allowing for focused short-term trading strategies.
Leverage Potential
Access leveraged positions to maximize capital efficiency while maintaining controlled risk parameters.
Setting Up Your Account
Step 1: Registration
Begin by creating your EXDGE account. You'll need to provide basic personal information and verify your identity in compliance with regulatory requirements. The process typically takes 5-10 minutes and requires a government-issued ID and proof of address.
Step 2: Account Verification
Complete the KYC (Know Your Customer) process by uploading required documents. Our automated system typically verifies accounts within 24 hours. You'll receive an email notification once your account is approved and ready for funding.
Step 3: Fund Your Account
Deposit funds using your preferred payment method. EXDGE supports bank transfers, credit/debit cards, and select cryptocurrencies. Minimum deposit requirements vary by account type, starting from $250 for standard accounts.
Step 4: Platform Familiarization
Explore the EXDGE trading platform using our demo mode. Practice placing trades, analyzing markets, and managing positions without risking real capital. We recommend spending at least a few hours in demo mode before live trading.
Understanding Contract Types
Binary Outcome Contracts
These contracts settle at either 100 or 0 based on whether a specific event occurs. For example: "Will Bitcoin reach $100,000 by December 31st?"
Example:
Buy at 65 → Event occurs → Settles at 100 → Profit: 35 points
Multi-Outcome Contracts
These contracts have multiple possible outcomes, with only one settling at 100 and others at 0. Common for elections, sports championships, or categorical predictions like "Which candidate will win?" or "What will be the final score range?"
Example:
Election: Candidate A at 45, B at 35, C at 20 → A wins → Settles at 100 → Profit: 55 points
Placing Your First Trade
Follow these steps to execute your first Event Contract trade on the EXDGE platform:
Select Your Market
Browse available Event Contracts by category (Economic, Political, Crypto, etc.). Review the event details, expiration time, and current market price.
Analyze the Opportunity
Research the event outcome probability. Consider historical data, expert opinions, and current market sentiment. Check the implied probability reflected in the current price.
Determine Position Size
Calculate your position size based on your risk tolerance. Remember: your maximum loss is the price you pay multiplied by your position size. Never risk more than 1-2% of your account on a single trade.
Place Your Order
Choose between market orders (immediate execution) or limit orders (execute at your specified price). Review all details including fees, expiration time, and potential profit/loss before confirming.
Monitor and Manage
Track your position in the portfolio section. You can close positions early if market conditions change or hold until expiration for full settlement.
Important Considerations
Start Small: Begin with smaller position sizes while you learn the platform and develop your trading strategy. Gradually increase exposure as you gain confidence and experience.
Understand Expiration: Event Contracts have specific expiration times. Make sure you understand when your contract expires and how settlement works for each contract type.
Risk Management: Always use proper position sizing and never invest more than you can afford to lose. Event Contracts involve substantial risk, and losses can occur quickly.
Stay Informed: Keep up with news and developments related to the events you're trading. Market conditions can change rapidly based on new information.
Next Steps
Now that you understand the basics of Event Contracts CFD trading, continue your education with these recommended guides: