What Is CFD Trading
CFD trading is defined as “the buying and selling of CFDs”, where “CFD” stands for “contract for difference”. CFDs are a derivative product as they enable you to speculate on financial markets such as forex, indices, commodities, equities and ETFs without having to take ownership of the underlying assets.
CFD trading enables you to speculate on price movements in either directions, so you can either buy (go long) or sell (go short). CFD trading is also leveraged, which means you can deposit a small percentage of the overall value of the trade to open a position.