Definition, Meaning & Synonyms

cfd

noun

/siː ɛf ˈdiː/

Definition

CFD stands for Contract for Difference, which is a financial agreement between two parties to exchange the difference in the value of an asset between the opening and closing of the contract.

Examples

Traders use CFD to gain exposure to foreign exchange markets.
With CFD trading, you can profit from both rising and falling markets.
Many investors prefer CFD because it allows for leveraged trading, maximizing potential returns.