Glossary

Contract For Difference (CFD)

DEFINITION

A Contract for Difference, or CFD, is a tradable financial derivative that lets you speculate on price movements without owning the underlying asset. The contract reflects the profit or loss between the opening and closing prices. CFDs can be used for markets such as shares, indices, commodities, and cryptocurrencies.

ELI5

It is like making a bet on whether a price will go up or down without actually buying the thing itself. You only gain or lose based on the price change.

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