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Contracts for Differences (CFDs) are conducted financial transactions on shares or indexes in which settlements are to be performed by the difference between purchase price and the sale. There is no need to carry out the physical delivery of the underlying asset, whether physical securities or indexes. The two parties agree to exchange the difference between purchase price and the selling price of a financial asset. The CFD is not just a contract between the investor and a financial institution (a broker or bank), which involves buying the stocks in the stock market and financing the acquisition, but it is set when the investor wishes. This ensures that the financial institution gets the amount of profit which is the difference between purchase price and the selling price. CFDs, margined forex and financial spread trading are leveraged products, which carry a high level of risk to your fund. It is possible that you lose more than your initial capital outlay with these products and they may not be suitable for all investors. So be ensured that you have completely understood the risks involved, and also seek independent financial advice if necessary, where they will help you to provide:
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