Contract For Difference
Contracts For Difference (“CFD”) is an agreement between the two parties on derivative instrument commonly referred to as “buyer” and “seller”, and its value is based on related assets such as global stock indices and commodities. When the contract is closed or the position is closed, if the price rises, the seller pays the buyer the difference between opening position and closing position, and vice versa. Profits are generated through price changes. The prices of CFDs move in the same direction as asset prices, but there are more flexibility and conveniences. CFDs have many advantages over direct asset trading.