We are here to help

What is a CFD?

Speculate on an asset

A CFD (contract for difference) is an agreement enabling traders to speculate on the value of a financial instrument without having to purchase it outright.

In a CFD contract, if the value of the instrument in question is higher when the agreement is closed than it was when it was purchased, the seller pays the difference to the buyer. In the event that the value is lower, the buyer pays the difference to the seller.

Was this article helpful?
3 out of 3 found this helpful