Contracts For Difference
A Contract for Difference (or CFD) is a contract between two parties, a buyer and a seller, where the seller pays the buyer the difference between the current value of a share (or index, or gold etc) and its value at contract time. (If the difference is a negative, then the buyer pays instead to the seller.)
This allows traders to speculate on share price movements without actually having to hold the asset. The leverage in some instances can be astounding – 1:100 when trading an Index.
This website does not provide investment advice in anyway shape or form, instead it points you to various resources on the web for trading with Contracts for Difference.
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