“An agreement between a ‘buyer’ and a ‘seller’ to exchange the difference between the current price of an underlying asset (shares, currencies, commodities, indices, etc.) and its price when the contract is closed thus requiring the investor to only put down a small margin (‘deposit’) of the total value of the trade.
CFDs are derivatives that allow traders to take advantage of prices moving up (long positions) or down (short positions) without directly dealing with the underlying financial instruments. “
