Explained: How CFDs Work in the Financial Markets

 


Contracts for Difference (CFDs) have gained popularity among traders as a versatile financial instrument for speculating on price movements in various asset classes without owning the underlying asset. Understanding how CFDs work is essential for traders looking to capitalize on their flexibility and potential for profit. In this article, we'll delve into the mechanics of CFDs, their advantages, risks, and how they operate within the financial markets.

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