CFDs refer to an arrangement between two parties that enables a buyer and seller to exchange the difference in the value of an asset before and after price fluctuation, resulting in either a negative or positive difference. Hence, online trading through CFDs provide investors the opportunity to benefit from both an increase in prices of various instruments without having to physically own such assets. If the asset price rises between the time a trade is opened and closed, the buyer receives a profit from the seller, and vice versa.
