A Contract for Difference (CFD) is an agreement between a buyer and seller that obligates the buyer to pay the seller the difference between the current asset value and its value at the time of the contract. In other words, CFDs allow traders to speculate on price movements.
Unlike traditional investments, the value of CFD contracts is not tied to the underlying asset's value. Instead, it is based solely on the difference between the opening and closing prices of the trade. This means traders can increase their equity even in a bearish market. The popularity of CFD trading has skyrocketed in the past decade.
Trading CFDs presents an opportunity for traders and investors to benefit from price movements without owning the underlying assets. This makes it more accessible for ordinary individuals to begin trading, as opposed to traditional stock exchange brokers with high barriers to entry. As a result, CFD trading offers a more affordable avenue for individuals to participate in the financial markets.
Manage risk effectively with both Stop Loss and Take Profit.
Make data-driven trades with proper analytics.
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