Contracts for Difference (CFDs): Trading
Interactive

Contracts for Difference (CFDs): Trading

Intuition Publishing
Updated Sep 24, 2020

Here we discuss CFDs on equity indexes, and using an example, we look at the purchase of a CFD, the margin that has to be paid, and the potential P&L a trader might make. We examine stop and limit orders on CFDs, and finally outline some of the advantages and disadvantages associated with CFDs.