A Contract For Difference, or CFD, is a Contract For Difference.
It is a kind of financial derivative which appeared relatively late in the financial market.
As a result, traders can still predict short-term price changes in financial markets, including, stocks, commodities and indices, without ownership of assets.
As a financial derivative, the value of CFDS is derived from the market value of the underlying asset.
A contract for difference is actually a contract for the difference between a buyer and a seller.
The contract provides that the seller pays the buyer in cash the difference between the contract price and the settlement price of the commodity (if the difference is negative, the buyer pays the seller).
The whole process does not involve the trading of commodity subjects, so we can also say that this is an investment act by calculating the difference between the opening price and the closing price of the commodity.
Delivery in this process does not need to touch the subject matter itself at all, but only the delivery of its contract.
