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Mariusz Terkowski
•5 years

What are CFD contracts ??

I am interested in what are CFD contracts, are they real company stocks or commodities ??

I am interested in what are CFD contracts, are they real company stocks or commodities ??

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2 answers

Tomek Podgórski
Tomasz Dabkowski

A Contract for Difference (CFD) is a financial contract that pays the difference in the settlement price between the opening and closing trades.

CFDs basically allow traders to trade the directions of securities in a very short period of time and are especially popular in currency and commodity products. There is no delivery of physical goods or securities with CFDs.

CFDs are settled in cash, but their use allows sufficient margin to be traded so that traders only need to put up a small amount of a hypothetical contract.

Basically, traders use CFDs to place price bets on whether the price of an underlying asset or security will go up or down.

Traders who expect an upward move will buy CFDs and those who see an opposite downward move will sell the initial position.

A Contract for Difference (CFD) is a financial contract that pays the difference in the settlement price between the opening and closing trades.

CFDs basically allow traders to trade the directions of securities in a very short period of time and are especially popular in currency and commodity products. There is no delivery of physical goods or securities with CFDs.

CFDs are settled in cash, but their use allows sufficient margin to be traded so that traders only need to put up a small amount of a hypothetical contract.

Basically, traders use CFDs to place price bets on whether the price of an underlying asset or security will go up or down.

Traders who expect an upward move will buy CFDs and those who see an opposite downward move will sell the initial position.

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CFD contracts, or contracts for difference, are financial instruments that allow investors to speculate on changes in the prices of financial assets, such as stocks, commodities, indices, or currencies, without the need to physically own these assets. This means that the investor does not become the owner of the stocks or commodities, but rather enters into an agreement with a broker regarding the difference between the opening and closing prices of the position. This way, investors can profit from price changes without committing a large amount of capital.
CFD contracts, or contracts for difference, are financial instruments that allow investors to speculate on changes in the prices of financial assets, such as stocks, commodities, indices, or currencies, without the need to physically own these assets. This means that the investor does not become the owner of the stocks or commodities, but rather enters into an agreement with a broker regarding the difference between the opening and closing prices of the position. This way, investors can profit from price changes without committing a large amount of capital.

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