Is CFD trading a good investment?

It is possible to achieve significant financial gains from CFD trading due to the leverage it offers, which can amplify both profits and losses. However, it’s important to note that the high leverage associated with CFD trading will also increases the risk of substantial losses.

How does a CFD investor get paid?

A CFD investor never owns the underlying asset but is paid based on the price change of that asset. For example, instead of buying or selling physical gold, a trader can simply speculate on whether the price of gold will go up or down. The offers that appear in this table are from partnerships from which Investopedia receives compensation.

Is CFD trading legal?

CFD trading is legal in many countries. In many countries, CFDs are the primary method of trading short-term price movements. However, there are certain characteristics associated with CFDs that mean they are not permitted in certain territories.