Want to gain from an asset's movements, but don't have the savings to buy it? Don't want to pay commission fees? Then the contract for difference (CFD) is the right product for you.
CFD is the difference between where a trade is entered and exited. It's a contract between a trader and a broker. The only thing you will pay is the difference between the asset's bid and ask prices at the moment you enter. You do that at the ask price. In that case if the bid price goes higher past the starting bid price, you collect the difference from the moment you entered - minus the initial bid-ask spread (the instrument's price).
Among the many advantages of CFD is the much lower maintenance margin (around 2%) to traditional trading. This means higher leverage, which could mean bigger profits. There are also no short-selling rules or day-trading requirements.
To start trading CFD it only takes 4 simple steps: