What is a CFD or Contract for Difference?

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What is a CFD or Contract for Difference? 


A contract for difference (CFD) is a popular form for derivative trading.


CFD trading enables you to speculate on the rising or falling prices of fast-moving global financial markets, such as shares, indices, commodities, treasuries, and currencies.

With CFD trading, you don't sell the underlying asset E.G. physical share, currency pair or commodity.

You buy or sell a number of units for a particular instrument depending on whether you think prices will go up or down.

We offer CFD on a wide range of global markets and our CFD instruments include shares, treasuries, currency pairs, commodities and stock indices such as the UK 100 which aggregates the price movements from all the stocks listed on the FTSE 100.

For every point the price of the instrument moves in your favor, you gain multiples of the number of CFD units you have bought or sold. For every point the price moves against you, you will make a loss. Remember that losses can exceed your deposits.

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