What is CFD trading and how does it work?
Published on: 02/11/2021 | Modified on: 16/05/2022
A contract for difference is a financial derivative product that pays the difference in settlement price between the opening and closing of a trade. CFDs are a tax efficient* (UK) way of speculating on the financial markets and are highly popular amongst FX and commodities traders. CFD trading enables you to speculate on the rising or falling prices of fast-moving global financial markets, such as forex, stocks and shares, indices, commodities, and treasuries.