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CFD

BeginnerInstruments
Last reviewed on May 3, 2026

Contract for Difference - a derivative that lets you speculate on price movements without owning the underlying asset.

A CFD mirrors the price of an underlying market (forex pair, stock index, commodity) and settles the difference between the opening and closing price. You never take delivery of the asset. CFDs are leveraged, so both gains and losses are amplified relative to the margin posted.

Many forex brokers also offer CFDs on indices and commodities on the same platform, making them a popular all-in-one vehicle for retail traders in regulated markets outside the US.

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