What is a Contract For Difference (CFD)?
A Contract For Difference (CFD) is an agreement between two parties to settle, in cash, the difference between the opening and closing prices of a particular instrument. As a result, CFDs simulate the price performance of various financial instruments, without the need for the trader to physically own the assets, and do not involve settlement of the physical financial instrument. Furthermore, CFDs are traded on margin, enabling you to trade with only a percentage of the cost of the underlying financial instrument and to leverage your position. Please be aware however, that CFD trading carries above average risk and is not for everyone, so please ensure you fully understand the risks involved. You should be aware that it is possible to lose more money than your initial deposit and that you may be required to make further deposits at short notice. You should not engage in CFD trading unless you understand the nature of the transaction you are entering into, the risks involved and the tru
