What is CFD (Contract for Difference)?
A CFD lets you speculate on price movements without owning the underlying asset, using leverage — making it the primary instrument for UK retail traders.
In-Depth Explanation
Practical Example
"Instead of buying Apple shares, a trader opens a CFD position to profit from the price move with less capital."
Related Terminology
Leverage
Borrowed capital from your broker that lets you control a position larger than your deposit — amplifying both profits and losses equally.
Spread Betting
A tax-efficient way of speculating on the price movement of various types of financial instruments.
Margin
Margin is the portion of your account balance that the broker "locks away" as collateral to keep your leveraged position open.
ECN Broker
Electronic Communication Network; a broker that connects retail traders directly to Tier 1 liquidity providers.
Tactical How-To Guides
How to Start Trading in the UK — Step by Step
Learn how to start trading in the UK. A complete step-by-step guide covering regulation, choosing a broker, and placing your first trade safely.
How to Day Trade — Step by Step
Master the art of day trading. Learn how to manage your time, choose instruments, and execute trades within a single day.
How to Keep a Trade Journal
Stop gambling and start trading. Learn the exact process for keeping a professional trading journal that identifies your edge.
Master the language of risk
Knowing the terms is just the start. Learning how to apply them is where the edge is found.
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