TRADING GLOSSARY
CFD (contract for difference)
A CFD is a contract to exchange the difference in an asset's price between opening and closing a trade. You can trade rising or falling prices without owning the asset, usually with leverage.
EXAMPLE
Buying a gold CFD gives exposure to the gold price without buying or storing physical gold.
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Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Glossary definitions are general education only and are not investment advice. Risk disclosure