What is CFD trading?

26/06/2026 06:53:12


CFD trading (Contract for Difference) is a form of derivative trading that allows you to speculate on the price movement of financial instruments, such as forex, indices, commodities or crypto, without owning the underlying asset. When trading CFDs, you enter a contract to exchange the difference in an asset’s price between the time you open and close the position. CFDs are typically traded on margin, meaning they are leveraged products that can amplify both profits and losses.