A CDF or Contract for difference is an agreement between two parties to exchange the difference between the opening price and closing price of a contract.

A contract for difference allows you to trade on whether the price of a financial instrument is likely to go up or down in value.  If you make a profit or a loss is determined by the difference between the buy price and the sell price of the instrument you are trading.
Whereas, it is possible for you to pay just a small percentage of an instrument’s value your profit or loss is the same as if you owned 100% of the physical instrument.

A contract for difference allows you to trade on whether the price of a financial instrument is likely to go up or down in value. If you make a profit or a loss is determined by the difference between the buy price and the sell price of the instrument you are trading.
Whereas, it is possible for you to pay just a small percentage of an instrument’s value your profit or loss is the same as if you owned 100% of the physical instrument.

Extra features of CFD’S are:
Hedge your portfolio: If in any case you think you may lose of its values, you can use CFDs to offset the loss by short selling.

24 Hour Dealing: It’s very important to have access to your account anywhere, anytime. Markets move quickly and you certainly will need fast access.

High Leverage: Contracts for difference are traded on leverage. Hence you pay on a small fraction of the total value to open your position rather that paying for it in full, commonly known as margin
No stamp duty: Contract for difference are a derivative product, you don’t actually own the underlying instrument; however, you don’t have to pay a stamp duty.
Wide Range of Markets: Several of individual markets such as: shares, indices, currencies, commodities, interest and sectors.

Contracts for difference can increase your return on investment, keep in mind that losses can also be magnified.

CFDs must be handling with care and with a wide knowledge of the markets, as there are risks associated. If you have any questions to whether this investment is suitable for you, you should obtain expert advice from an independent Financial Adviser.