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Instruments

CFD (contract for difference) — definition & meaning

A leveraged contract to exchange the price change of an asset, without owning it.

A CFD is a contract with a broker to swap the difference in an asset's price between opening and closing a trade — you never own the underlying.

CFDs make it easy to go long or short with leverage across many markets. That flexibility is also why they are risky: most retail CFD accounts lose money, and regulators require prominent risk warnings.

The information on Trding.io is for general information only and is not investment advice. Trading involves a real risk of losing money, and most retail traders lose. Never trade money you cannot afford to lose.

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