Contracts for Differences (“CFDs”) are products developed to allow customers to enjoy all the benefits of possessing a stock, index, ETF, forex or commodity position without having to physically own the underlying instrument itself.
With CFDs customers can buy (“go long”) and close the position later by selling. Alternatively customers can sell (“go short”) and close the position later by buying. Selling at a higher/lower price than the purchase price yields a gain/loss accordingly.
CFDs have grown in popularity over the past few years and becoming a popular way to trade the financial markets. Continue reading CFD Trading with Plus500