Contracts for Difference (CFDs): Basics

Contracts for Difference (CFDs): Basics

Intuition Publishing
Updated Sep 24, 2020

Contracts for Difference (CFDs) allow market participants to speculate on prices moving up or down in underlying financial instruments without actually owning the instrument. We look at the basic features of CFDs, and discuss the margin requirements. We then demonstrate a short CFD position and a long CFD position using two examples.