What is a CFD?
A CFD (‘contracts for difference’) is a private agreement in which you agree to settle the difference between the current price of, for example, shares, currencies or commodities, and the price at the time the contract was concluded.
CFDs can have a very high level of risk. That is the case when you speculate with a so-called leverage. This ensures that you can trade with more money than you invest; you are actually speculating with borrowed money. That increases the risk. In addition, the leverage can lead to you losing more than your investment and having to pay off a residual debt to the provider.
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