Forex Glossary

Get the grips with forex jargon in your trading journey

Contract For Difference (CFD)

Jul 20, 2020 10:15

|

The abbreviation CFD stands for “Contract for Difference”. It is a contract between two parties: the seller pays the buyer the difference between the current value of an underlying asset and its value at the moment the contract is made if the difference is positive, and, vice versa, if the difference is negative, the buyer pays the seller. With CFDs traders can get access to underlying assets without actually owning them.

Loading spinner