Contracts for difference
Contracts for difference (CFDs) are a type of financial derivative used in CFD trading.
They can be used to trade a variety of financial markets like shares, forex, commodities, indices or bonds. CFDs are traded in contracts: you take out a certain number of contracts, and each is equal to a base amount of the underlying asset. One contract is equal to a trade of £10 per point on the FTSE, for example.