Leveraging in CFD Trading: Benefits and Risks

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Contract for Difference (CFD) trading has gained popularity among investors seeking to capitalize on price movements in financial markets without owning the underlying assets. Here’s a comprehensive look at what CFDs are and cfd how it works.

A Contract for Difference is a derivative financial instrument that allows traders to speculate on the price movements of various assets, such as stocks, commodities, currencies, and indices, without owning them outright. Instead, traders enter into a contract with a broker to exchange the difference in the asset's price between the opening and closing trades.

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