 What is CFD trading? CFDs, or Contracts for Difference, offer a cost-efficient way to trade on thousands of global financial markets, including shares, indices, foreign exchange, treasuries and commodities. If you think the product will go up in value, you can buy a number of units or go long. If you think the product will fall in value, you can sell a number of units or go short. Each product has a sell and a buy price. The difference between the two is called the spread. Your profit or loss is based on the difference between the price you enter at and the price you exit at. The more points the market moves in your chosen direction, the more profit you make. This difference, multiplied by the number of units, equals your profit. If the market moves in the opposite direction, you will make a loss. Depending on the currency a product is quoted in, currency conversions may apply. You don't need much capital to get started either, as you don't have to outlay the full value of your position. Just a small percentage. This is called trading on margin. Since you don't own the underlying asset, there is no stamp duty to pay. With CFDs, many products are available, even if the underlying market is closed, allowing you to trade 24 hours a day, 5 days a week. Visit our website and open a demo account to learn more.