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Contract for Difference (CFD)

Trading Term

A contract for difference (or CFD) is a type of derivative that gives exposure to the change in value of an underlying asset. This instrument allows traders to leverage their capital and provides all the benefits of trading securities without actually owning the product.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 57.9% of retail investor accounts lose money when trading CFDs with IBKR. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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