So what is CFD trading? Well the term itself stands for Contract for Difference. You’re probably thinking great, what the hell does that mean. And basically it means this. The difference of the contract price from the time you bought it to the time you sold it. And of course vice versa if you went short (meaning you sold first and bought later).
A few things to know.
In short… Don’t Be Scared. No but seriously, there’s nothing to fear. Trading online CFD’s are just like anything else. It’s just a different vehicle with the same moving parts.
The Trader Institute