How Does CFD (Contract For Difference) Trading Work?

CFD, or contract for difference, refers to a popular financial instrument that is the key component of a trader’s portfolio. CFDs are a form of trading and a popular gateway for a series of investors to enter the financial market. They are offered by brokers for common tradable assets like forex, commodities, and spot metals. CFDs are a type of derivative trading. In essence, this means that its value is derived from the price movement of the underlying asset. They basically allow traders to trade the price movement without actually owning the asset. Several platforms including Vantage Markets are among … Continue reading