What is CFD trading?

August 31, 2015

Contracts for differences (CFDs) offer the opportunity gain exposure to anticipated price movements in an underlying asset class such as a currency, commodity, stock or index. CFDs are leveraged financial derivatives offering a large exposure to an underlying asset for a small outlay. When trading CFDs with Fortrade, you are not buying (or selling) the underlying asset, but instead opening a “long” (buy) or “short” (sell) position on that asset’s spot price.

 

 

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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.