The fight club of finance
May 26, 2021
2 minutes
David Thornton
Once the domain of professional investors looking to hedge their portfolios, contracts for difference (CFDs) are increasingly being traded by retail investors. But are they worth the risk?
CFDs are over-the-counter (OTC) derivatives, so the underlying security is never physically owned.
They are essentially a two-way bet between a provider and a trader that a security, such as stock or currency pair, will
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