Similar to forex trading, CFD (Contract For Difference) is a tradable contract between a client and a broker to exchange the difference between the opening price and closing price of a contract. With CFDs, FinMarket investors can benefit from the fluctuations* in the price of stocks, commodities, indices and more, without actually owning the underlying asset.
CFDs are the most popular way to trade due to their leverage, flexibility to short sell and cost effectiveness. As an investor, you can also use CFDs as a way of hedging your existing portfolio through periods of short-term volatility**.
* Traders may profit in rising and falling markets, but they may also incur losses. For more information on the risks please CLICK HERE to read our Risk Disclosure
** Leverage can multiply your gains but can also multiply your losses. Make sure to use leverage wisely.
*** Trading education is provided by a third party and is provided solely for promotional purposes. Under no circumstances such information shall be interpreted and/or construed as investment advice. K-DNA FINANCIAL SERVICES LTD (“K-DNA”) disclaims all liability, including any warranties for such third-party services and K-DNA does not make any representation as to the fitness of such third-party services for the customer’s intended purpose.