Contracts for Difference or CFD’s are contracts between two parties where one will agree to sell something to someone at an agreed price at a future date. There would not normally be a set time for the contract to end, and the positions would typically be renewed at the close of the business day. If the market has dropped from the open price, then the buyer would be liable for this difference, if the market has increased then the seller would have a deficit to the buyer.

CFD’s are a way of leveraging your cash and speculating on the share price movements on any given day, without actually owning the shares.