What are the benefits of CFDs?
CFDs allow you to open a contract for the difference in the price of an asset, from the point of opening to when you close. They are a versatile way to trade a wide range of markets, but it’s important to understand the risks too:
CFDs are leveraged, which means you only have to put down a small deposit for much larger exposure. Leverage can make your investment capital go further, but if the market moves against you there’s a risk you can lose more than your deposit.
Go long or short
CFD trading allows you to take a position on the future value of an asset – so CFDs are very flexible and you can trade whether you think the market will go up or down. But remember, because you’re not physically trading in the underlying market, you never actually own any assets.
Learn more about leverage and the risks of CFD trading