What is CFD Contract? [Features of CFD Contracts on Stocks, Forex, and Crypto]

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  • Math

  • High School

  • 12th grade

  • Calculus and Advanced Math Concepts

  • English

Author's Instructions

By using CFD contracts (Contract for Difference), traders can profit from price fluctuations without the need for physical asset ownership.

Thanks to this feature, investors under a Contract for Difference are not subject to asset holding costs or Capital Gains Tax; however, they also do not receive dividendsbonds, or voting rights.