CFD (Contract for Difference) Definition

A CFD is a derivative product that lets traders speculate on the price movement of an underlying asset without owning it.

What is a CFD?

CFDs allow traders to go long or short and can involve leverage, meaning both profits and losses can exceed the initial deposit.

They are commonly used to trade currencies, indices, commodities, stocks, and other markets through a single platform.

Opening a CFD position on a stock index lets a trader profit from its price movement without owning the underlying shares.

A candlestick chart is a price chart that displays the open, high, low, and close for a period using a body and wicks.

A capital gain is the profit realized when an asset is sold for more than its original purchase price.

Capitalization, or market capitalization, is the total market value of a company's outstanding shares.