Contract for Difference (CFD)

A Contract for Difference (CFD) is a financial derivative that allows traders to speculate on the price movement of an asset without actually owning it. The profit or loss is determined by the difference between the entry and exit price of the contract. CFDs are available for cryptocurrencies on many regulated trading platforms and can be traded with leverage. They are popular for short-term trading but carry significant risk due to leverage and are banned or restricted in some jurisdictions.