Contract For Difference (CFD) Trading is a way to take advantage from the fluctuating price an underlying asset direct with their broker without ever owning the underlying asset. When an investor trades a CFD they will be able to take advantage or disadvantage from the difference in buy and sell price without having to have the underlying asset.
CFD's trading is available in a range of asset classes and markets and provides investors excellent leverage whilst still providing competitive spreads. The commission on a CFD is usually the spread of the asset as the difference in buy and sell price needs to be overcome in order to start to profit.
In a CFD contract, if the value of the instrument in question is higher when the agreement is closed than it was when it was purchased, the seller must pay the difference to the buyer, if the value is lower the buyer must pay the difference to the seller.
Your capital is at risk