What is a CFD (Contract For Difference)?
A CFD is a popular form of derivative trading. CFD trading enables you to speculate on the rising or falling prices of fast-moving global financial markets (or instruments) such as shares, indices, commodities, currencies and treasuries.
CFDs are the instrument of choice for the modern trader. Categorised as OTC (Over the Counter) derivative trading, CFDs are one of the most simple ways to trade online.
They present a contract between broker and trader, which allows the trader leverage and the opportunity to gain or lose from price fluctuations between when the contract opens and when it closes. Leveraged trading means that you have access to much larger market exposure.