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CFD

CFD, or Contracts for Difference, is a contract between two parties, typically described as "buyer" and "seller", stipulating that the seller will pay to the buyer the difference between the current value of an asset and its value at contract time. (If the difference is negative, then the buyer pays instead to the seller). The CFD price is the price of the underling asset. If the price of the underlying asset goes up, so will the price of the CFD. CFDs allow you to use the power of leverage which is not generally available in equity products. As a result, CFDs have grown in popularity dramatically over the past few years.

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