CFDs

What is a CFD?

A CFD, or Contract For Difference, is an agreement between two parties to exchange the difference between the current value (opening price) of a financial instrument and its value at contract time (closing price). CFDs are financial derivatives that allow traders to take advantage of prices moving up or down on underlying financial instruments. Trading CFDs is as such very similar to traditional trading, but without the need to actually buy the underlying share, currency or commodity.