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A Contract for Difference (CFD) is an agreement between 2 parties to settle, at the close of the contract, any difference between the opening and closing prices of the contract multiplied by the number of units of the underlying asset specified in the CFD.
CFDs allow you to participate in the price movement of an underlying product without actually owning the asset. This can be done by fulfilling a minimum collateral requirement (known as margin) instead of the full contract value.
