Account Types

A CFD is a type of derivatives trade. CFDs allow traders and investors to profit from price movement without owning the underlying assets. The CFD does not consider the asset's underlying value, only the price change between the trade entry and exit. A CFD is an agreement between an investor and a CFD broker to exchange the difference in the value of a financial product between the time the contract opens and closes. It is an advanced trading strategy that is used only by experienced traders. No physical goods or securities are delivered in a CFD transaction. A CFD investor never owns the underlying asset but is paid based on the price change of that asset. For example, instead of buying or selling physical gold, a trader can simply speculate on whether the price of gold will go up or down.