Contracts for Difference (CFDs) are one of the most widely used trading instruments in modern financial markets, especially for short-term traders and investors looking for flexibility. Despite their popularity, CFDs are often misunderstood. At its core, a CFD is a derivative contract between a trader and a broker. Instead of owning the underlying asset, the trader agrees to exchange the difference in price of an asset between the time the trade is opened and when it is closed. If the price moves in your favor, you profit. If it moves against you, you incur a loss. Ownership of the actual asset never changes hands. ... (full story)