cTrader Contract for Difference (CFD)

cTrader is a leading multi-asset forex and CFD trading platform.

Contract for Difference trading is actually offered by the broker, and the cTrader platform supports such trading. There are many brokers that offer CFD trading, view our recommended brokers.

There is no ownership, so when you trade a CFD, you're not buying the actual asset (like a stock or commodity), but rather speculating on whether the asset’s price will rise or fall.

Concepts of a CFD

  • If you believe the price of the symbol will rise, you "go long" and (buy).
  • If you believe the price of the symbol will fall, you "go short" and (sell).
  • If the market moves in your favor you will make a profit.
  • If the market moves against you, it will incur a loss.

CFDs are often traded with leverage, so you only need to deposit a small percentage of the full trade value (this is called the margin), but you still gain (or lose) exposure to the entire market value. Leverage can also magnify both profits and losses.

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CFDs allow you to trade with leverage, where you can open larger positions with a smaller amount of capital, example, with a 10:1 leverage, you only need £1,000 to control a £10,000 position. This will increase the potential return on investment, though it also increases the overall risk.