Options & derivatives
CFD (contract for difference)
A CFD is a contract that lets you bet on an asset's price change without owning it, up or down.
A CFD is a contract that lets you bet on an asset's price change without owning it, up or down.
You exchange with your broker the price difference between opening and closing the position. CFDs offer high leverage and easy access to many markets, but that leverage makes losses fast: a risky product.
You open a long CFD on an index; if it rises 2%, you earn the difference, multiplied by the leverage.
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