A CFD is a financial derivative that trades the price difference between the entry and exit price and is ultimately settled in cash.
CFDs allow investors to trade the direction of a stock, commodity, stock index or currency.
This instrument is traded with a significant leverage (margin loan), so, on the one hand, entering into the investment requires very little essential capital. On the other hand, it can result in large fluctuations in profits and losses.
It is an efficient alternative to enter a short position (when we expect a profit from a price drop) if trading is not allowed on the stock or commodity market due to various regulatory restrictions.
Regarding costs, trading CFDs is much more favourable than shares, but the investor who owns the CFD does not have any property rights provided by the share.
We offer CFD contracts: Share CFD (CFD on shares) and Index CFD (CFD on indices).