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CFD's

CFD Stands for Contract For Difference.  And it’s a contract to exchange the difference in value of the financial deed between the time at which the contract is opened and the time it is closed.
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Simply, CFD’s are contractual agreement between two parties to exchange the differences of the prices of the contracts between opening and closing.
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How you work on CFD’s?
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You actually trade in the currency of the underlying market |e.g. US Dollar for US equities| then your profit of loss is converted into the base currency of your account when your position is closed.