Trading in CFDs

Trading in contracts for difference, frequently referred to as CFDs, is becoming increasingly popular among both institutional and private traders because of the flexibility they offer. CFD trading is a speculative instrument for trading shares, indices, futures and commodities. It is a retail-level market derivative utilised by traders for its leverage advantages. CFDs are also known as equity swaps in the institutional marketplace.

What is a CFD?

A CFD is an arrangement made in a futures contract whereby differences in settlement are made through cash payments, rather than the delivery of physical goods or securities. (Investopedia)