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CFD Trading

CFD refers to Contract For Difference which is a product you can trade usually exactly like you would a real stock, forex or commodity but without ever owning the underlying product.

CFD's are a derivative which means that their price is a function of the price of the underlying product. So it you were talking about a CFD of US/EUR currency pair, you could take a long or a short position at a given time and close the trade some time later and either make some money or lose money exactly as you would if you had done the trade with real forex. CFD's are usually bought on margin which means they are a leveraged derivitave.

 

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