Contracts for difference (CFDs) are trading instruments that allow you to trade the share price instead of a share. You can put down a deposit and benefit from a rise in a share’s price even though you didn’t own the share. Unfortunately, the same holds true when a share price falls. In this video, Simon Brown explains what CFDs are and how you can use them in your trading portfolio. He introduces exposure and margins as a first step on the journey to understanding CFDs.
In the first of the IG Trading Boot Camps, Simon discusses how you would start becoming a trader.