What are CFDs?

CFDs are tradable instruments that enable you to trade on live market price movements without having to actually own the underlying instrument that you are trading. A CFD, also known as a Contract for Difference, is a written agreement made between two parties to exchange the difference between the opening and closing price of a contract.

With CFDs, you can deposit a small amount of money and apply leverage, enabling you to potentially magnify your profits. You can also go ‘long’ (buy) or ‘short’ (sell), meaning you can benefit from any market movements.


Article is closed for comments.