CFDs are leveraged instruments traded over-the-counter with a securities firm, which is commonly referred to as a CFD provider. A CFD is a Specified Investment Product (SIP), on a need to sell or buy basis.
Dealing in CFD is attractive to day traders that can use leverage in trading assets that are more costly to buy and sell. However, the low industry regulation, potential lack of liquidity, and the need to maintain an adequate margin make CFD a risky trade. [Read more…] about CFD Trading: What it is and How it Works