CFD or Contract for Difference is a Defi instrument where traders can trade not physically such as crypto, shares, currencies etc., but trade on changes in the price of the asset. CFD trading allows traders to speculate on prices without having to own the asset to be traded or entered into a contract. CFDs also use the concept of margin trading. Traders can start CFD trading by opening a long or short position and selecting the asset to trade. To increase profits traders can also open leverage options.
