Cfd

/ˌsiːɛfˈdiː/ noun

Definition

A contract in financial trading where two parties agree to exchange the difference in price of an asset between opening and closing, used for speculation.

Etymology

Acronym for 'Contract for Difference'; emerged in late 20th-century financial markets as a derivative trading instrument.

Kelly Says

CFDs let you 'borrow' an asset's price movement without owning it—it's like betting on a horse race where you don't need to own the horse, just predict if it'll win.

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