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What is CFDs?

What is 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 an asset (e.g. shares, currency, indices). CFDs are derivatives products that allow you to trade on live market price movements, without actually owning the underlying instrument on which your contract is based, with profits or losses being realized depending on the position taken (i.e. long or short).