What are CFDs?
Contracts for difference (CFDs) allow you to open a contract for the difference in price of an asset, from the point of opening to when you close.
- Importantly, CFDs are a leveraged product. This means you only have to put down a small deposit for a much larger market exposure.
- Leverage comes with significant benefits and risks: your investment capital can go further, but you can also lose more than your initial deposit.
CFD trading allows you to take a position on the future value of an asset whether you think it will go up or down. While this means the product is very flexible, it also requires a high level of risk management.
It's important to remember you're trading contracts with IG, not physically trading in the underlying market. This means you don’t actually own any assets.
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