What is a CFD?

A CFD, or Contract for Difference, is an agreement between two parties to exchange the difference between the opening price and closing price of a contract. CFDs are derivatives products which allow you to trade on live market price movements without actually owning the underlying asset(shares, indices, single stock, or commodity) on which your contract is based. CFDs allow you to trade on the future movement of market prices regardless of whether the underlying markets are rising or falling. They allow traders access to markets which they would not normally be able to invest in.