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What are contracts for difference (CFDs)?

Contracts for difference (CFDs) is a leveraged product , which means that you only need to deposit a small percentage of the full value of the trade in order to open a position. This is called ‘trading on margin’ (or margin requirement).

What is the difference between CFD trading and traditional trading?

Costs and Fees CFD Trading: CFD trading involves costs like spreads (the difference between buying and selling prices), overnight financing fees, and, in some cases, commissions. Traditional Trading: Traditional trading involves brokerage commissions and fees, but the structure can be simpler without certain costs associated with CFD trading.

What are CFDs & how do they work?

CFDs allow investors to trade the price movement of assets including ETFs, stock indices, and commodity futures. CFDs provide investors with all of the benefits and risks of owning a security without actually owning it. CFDs use leverage, allowing investors to put up a small percentage of the trade amount with a broker.

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