// TRADING TERMINOLOGY
What is CFD (Contract for Difference)?
An agreement to exchange the difference in the value of an asset from the time the contract is opened to when it is closed.
In-Depth Explanation
CFDs allow you to trade price movements without owning the underlying asset. They are leveraged products and are popular for trading stocks, indices, and commodities.
Practical Example
"Instead of buying Apple shares, a trader opens a CFD position to profit from the price move with less capital."
Related Terms
Master the language of risk
Knowing the terms is just the start. Learning how to apply them is where the edge is found.
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