The term CFD refers to a contract for difference. Trading CFDs allows you to
speculate on the price of an instrument without really owning the asset. One of the
most intriguing elements of CFDs is that you can earn from both rising and declining
markets.
CFD trading is a type of financial derivative that allows you to bet on short-term
price changes. CFD trading has several advantages, including the ability to trade on
leverage and the ability to go short if you believe prices will fall or long if you
believe prices will rise.
You don’t purchase or sell the underlying asset when you trade CFDs; instead, you
buy or sell a number of units for a specific financial instrument based on whether
you think prices will rise or fall. We’ve got you covered if you want to learn more
about CFD trading or speak with an expert.
