📊 What is a CFD?

A CFD (Contract for Difference) is a derivative instrument that allows traders to speculate on the price movements of an underlying asset without owning the asset itself.

🔎 How does it work?

When trading CFDs:

• You agree to exchange the difference in price of an asset between the opening and closing of a trade.

• You can trade on rising (buy) or falling (sell) markets.

• You do not take ownership of the underlying asset (e.g., shares, commodities, indices).

  
  

📌 Key Characteristics

• No physical ownership of the asset

• Ability to trade both upward and downward price movements

• Typically traded using leverage (which increases both potential profit and risk)

  
  

⚠️ This content is provided for informational purposes only and does not constitute investment advice.