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GBP/USD 1.34194 ▲ +0.15%
USD/JPY 157.900 ▲ +0.41%
XAU/USD 3949.78 ▲ +1.37%
USD/CHF 0.81963 ▼ 0.40%
AUD/USD 0.70082 ▼ 0.23%
USD/CAD 1.39740 ▲ +0.04%
EUR/GBP 0.83581 ▲ +0.24%
EUR/USD 1.12160 ▲ +0.39%
GBP/USD 1.34194 ▲ +0.15%
USD/JPY 157.900 ▲ +0.41%
XAU/USD 3949.78 ▲ +1.37%
USD/CHF 0.81963 ▼ 0.40%
AUD/USD 0.70082 ▼ 0.23%
USD/CAD 1.39740 ▲ +0.04%
EUR/GBP 0.83581 ▲ +0.24%
ESC

Instruments

What is CFD (Contract for Difference)?

A financial derivative that allows you to speculate on price movements without owning the underlying asset.

Definition of CFD (Contract for Difference)

A financial derivative that allows you to speculate on price movements without owning the underlying asset. Forex, commodities, indices, and stocks can all be traded as CFDs.

At a glance

Term
CFD (Contract for Difference)
URL slug
cfd-contract-for-difference
Category
Instruments
Short answer
A financial derivative that allows you to speculate on price movements without owning the underlying asset.
Deep dives
/blog/what-is-cfd-trading-explained-2026/, /guide/what-is-forex/

Example

Apply the definition: restate “CFD (Contract for Difference)” in one sentence tied to your next trade (symbol, direction, size, stop). If you cannot, re-read the definition above.

Common mistake

Common mistake: using “CFD (Contract for Difference)” as loose slang while your broker/platform specification defines it more narrowly.

Professional tip

Tip: bookmark this “CFD (Contract for Difference)” page and reopen it when reading broker specs so definitions stay consistent.

Related deep dives

FAQ

A financial derivative that allows you to speculate on price movements without owning the underlying asset.

Knowing the precise definition of “CFD (Contract for Difference)” prevents platform and broker-spec mistakes—a common source of size and cost errors.

Common mistake: using “CFD (Contract for Difference)” as loose slang while your broker/platform specification defines it more narrowly.