What Are CFDs? The High-Leverage Trading Tool Everyone's Talking About CFDs, or Contracts for Difference, let you trade market movements without owning the actual asset. You're betting on price changes, not buying stocks, commodities, or crypto directly. How CFDs Work When you open a CFD position, you're entering a contract with a broker. If the asset price moves in your favor, you profit. If it moves against you, you lose. The difference between opening and closing prices determines your gain o