CFD

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In finance, the term 'CFD' stands for Contract For Difference. This is a contract between two parties, typically described as "buyer" and "seller" to exchange the difference in value of a financial instrument between the time at which the contract is opened and the time it is closed. In effect CFDs are financial derivatives that allow traders to take advantage of prices moving up or prices moving down on underlying financial instruments and are often used to speculate on those markets.

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