What is CFD?

CFD is Contract For Difference.
A CFD, or Contract for Difference, is an agreement between two parties to exchange the difference between the opening price and closing price of a contract.

CFDs are derivatives products that allow you to trade on live market price movements without actually owning the underlying instrument on which your contract is based.

You can use CFDs to speculate on the future movement of market prices regardless of whether the underlying markets are rising or falling. You can go short (sell), allowing you to profit from falling prices, or hedge your portfolio to offset any potential loss in value of your physical investments. Moreover, with over 12,000 markets to trade, you can gain exposure to markets you may not have had access to before. 

CFD Types:

There are typically a variety of CFD products available:

CFDs on stocks and shares
CFDs on commodities
CFDs on indices
CFDs on a variety of international markets in the above products

CFD Costs:

Costs of CFD trading include:

  1. Commissions
  2. Interest for long positions > 1 day
  3. Other fees if requiring data for certain platforms or markets

For Wealth DNA Class participants, you can also find our audio explanations on CFD here

Note:

All trading involves a high risk of financial loss, and the information on this site is for general information purposes only and is not financial advice in any form. Seek your own financial advice before taking any action.

All forms of trading involves risk of financial loss.

Also note that CFD trading is not legally permitted in some countries.

We cannot guarantee the accuracy of information, or that any information published has not changed since time of publication.

See our disclaimer for further information.