CFD Trading – Understanding The Risks Of CFDs

Contracts for differences (CFDs) are contracts between a buyer and a seller. The two parties agree to exchange the differences between the price of an underlying asset at the opening and closing of the contract. This is where the form of trade derives its name. CFDs are a type of derivative. This means they get their value from their underlying assets. So those who tease CFDs don’t trade any assets directly i.e. they don’t buy or sell the assets. They simply speculate on the price movements of the underlying assets. CFD contracts are usually settled in cash meaning that no Continue Reading →