Definition
A contract based on the difference in the price of an underlying asset, without itself conferring ownership of that asset.
What you need to know
A stock CFD is not the same as holding the stock. For example, Pepperstone Markets describes spreads and leverage in its CFD offerings, and IG International presents financing terms; these are terms for specific products and entities. Also check the client classification: rules protecting retail CFD clients in the UK do not establish which protections will apply to another account.
This information is for learning and comparison, not investment advice. Verify product details and eligibility conditions against the current source.
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