CFDs (Contracts For Difference) represent an agreement between two parties to trade a contract (one party sells and the other buys). When you trade a commodity, share, currency pair, ETF or an index as a CFD, you are not buying the actual instrument. Instead, you are rather trading on its price movement, which can, of course, move in either direction. Trading CFDs allows you to choose to open a Sell deal (‘short’) if you think the price will decrease or a Buy deal (‘long’) if you think the price will increase.
What is online CFD trading? Print
Modified on: Tue, 1 Dec, 2020 at 10:50 AM
Did you find it helpful?Send feedback
Sorry we couldn't be helpful. Help us improve this article with your feedback.