Contracts for Difference (CFD)

Contracts for Difference (CFDs) are financial agreements between traders and brokers that allow speculation on asset price movements without owning the underlying asset. When you open a CFD, you're agreeing to exchange the difference in value of the asset from the start to the end of the trade. If the asset price rises, you profit; if it falls, you incur a loss. CFDs provide leverage, meaning you can control larger positions with a smaller capital outlay, but this also increases risk. They are popular for trading stocks, commodities, currencies, and indices, offering flexibility and access to global markets.