A CFD (Contract for Difference) is a financial instrument that lets you trade on the price movement of an asset—without owning it.
You profit if the price moves in your favor and incur a loss if it moves against you. CFDs are usually traded with leverage, which can increase both potential gains and potential losses.
Example:
A trader speculates on the price movement of oil without owning physical barrels, profiting from the difference between entry and exit prices.
