What is CFD trading?

CFD (short for "Contract for Difference") trading is a form of trading and investing in an asset by entering into a contract with a broker rather than opening a position directly on a specific market. After the trader and the broker agree to duplicate market circumstances, they will settle the difference when the position closes. CFD trading has a number of benefits that direct trading does not, including access to overseas markets, leveraged trading, short (SELL) positions for assets that do not normally have that option, and more.