View more search results. CFD trading is the speculation on financial markets via contracts for difference CFDs , a form of financial derivative. A CFD is an agreement between two parties to exchange the difference in price of an asset from when the position is opened to when it is closed.
CFDs allow investors to trade market volatility across several asset classes without the need to own the underlying asset. CFD traders attempt to profit from assets moving in either direction, as CFDs can be both bought going long and sold going short.
CFD traders make use of leverage to gain extra exposure to the markets, amplifying both profits and losses in the process. CFDs are a leveraged product and can result in losses that exceed deposits. You do not own or have any interest in the underlying asset. The value of shares and ETFs bought through an IG share trading account can fall as well as rise, which could mean getting back less than you originally put in.
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Your capital is at risk. CFDs can result in losses that exceed your initial deposit. Please ensure you fully understand the risks involved. Log in Create account. What are the risks? Education Glossary of trading terms. Custodian definition Grey market definition Range definition. Trading platforms Web platform Trading apps Advanced platforms Demo account. Analysis News and analysis Economic calendar.More...