CFD trading, or Contract for Difference trading, is a type of financial derivative that allows traders to speculate on the price movements of an underlying asset without actually owning the asset. CFDs are typically used to trade stocks, commodities, currencies, and other financial instruments. They are a popular tool among traders because they allow for leverage, which means that traders can gain exposure to a larger position with a smaller amount of capital. However, leverage also increases the risk of losses, so it is important for traders to carefully manage their risk when trading CFDs. CFD trading is typically done through a CFD broker, and is available on a variety of different assets.
“When a falling stock becomes a screaming buy because it cannot conceivably drop further, try to but it thirty percent lower” – Al Rizzo