What Is The Difference Between A Contract For Difference And A Cash-Equity Trade?

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Many people who have an interest in financial investments more generally and the stock, bond and currency markets more particularly will have come across the term «contract for difference,» or CFD. Indeed many who don’t share that interest may have come across it too. But what is a CFD? How do they work? Who are they for? Why use them? This is the sixth in a series of ten short articles I am writing on the subject of CFD’s, the aim of which is to provide more information to those who wish to find out more about CFD’s. I hope you will find the articles both informative and useful.

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