What is a CFD? | About CFD Trading

A CFD (or contract for difference) is simply an agreement to exchange the difference in value of a particular financial instrument between the time at which the contract is opened and the time at which it is closed.

A contract for difference (CFD) is a derivative: its price is based on the underlying market price of an asset, such as a share or index.

When you trade CFDs, you trade on the change in the asset's value, without ever taking ownership of that asset.

Key benefits of CFD trading

• Take advantage of rising and falling markets
• Gain greater market exposure by trading on margin
• Enjoy the benefits of transparent pricing
• Keep trades open as long as you want
• Trade the South Africa 40 index 24 hours-a-day during the week

Leveraged access to markets

Unlike conventional trading, CFDs are a leveraged product. You trade on margin and provide only a small deposit to gain greater exposure to the market.

It's important to make sure you fully understand the risks involved before you start trading, as CFDs may not be suitable for everyone.

Risk-management tools

When it comes to any form of trading, money management is very important. Because CFDs are leveraged, losses can exceed your initial deposit. Therefore, we recommend that you research our range of tools to help you manage your risk when trading.

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.