Contract for Difference


A contract for difference (“CFD”) is a financial Derivative. Derivative products track the market price of an underlying asset so that traders can speculate on whether the price will rise or fall.

A CFD is basically a bet on a particular asset going up or down in value, with the CFD provider and you agree that whoever wins the bet will pay the other the difference between the asset’s price when you enter the trade and its price when you exit the trade.

CFDs can be traded with Leverage.

META

Status:: #wiki/notes/mature
Plantations:: Investment
References:: Babypips