Contracts for Difference (CFDs) are derivative financial instruments that allow traders to speculate on the price movements of various assets, such as forex, commodities, indices, shares, and more, without owning the underlying asset.
Key features of CFDs include:
Leverage: Allows traders to open larger positions than their invested capital. While leverage can amplify potential gains, it also increases the risk of losses.
Flexibility to Go Long or Short: Traders can trade on both rising and falling markets by opening buy (long) or sell (short) positions.
Access to a Wide Range of Markets: Exposure to various asset classes, including stocks, commodities, indices, and forex, all through a single trading platform.
No Need for Physical Ownership: CFDs allow you to trade on price movements without owning the underlying asset.