CFD trading (contract for difference) is a form of derivative trading that allows traders the opportunity to profit from price movements without owning the underlying asset. CFD traders speculate on the rising and falling prices of the global financial market such as indices, shares, currencies, commodities and bonds. Traders are able to buy or sell a number of units for a particular instrument depending on whether you think prices will go up or down. Therefore trading is not based on buying or selling.

CFD trading allows traders to:

  • Make capital go further with leverage
  • Hold long or short positions
  • Trade without having to own the asset
  • Speculate both on rising and falling markets