Contracts for difference (CFDs) are contracts on shares, indices, foreign exchange and commodities bought or sold at the current market price, where settlement depends on the difference between the purchase or sale price and the price on settlement day.

Question

Quizplus · Accepted Answer

CFDs are financial derivatives that allow traders to speculate on the price movements of various assets without owning the underlying asset, with profits or losses determined by the difference in price from the opening to the closing of the contract.

Contracts for Difference (CFDs) Are Contracts on Shares, Indices, Foreign