CFD (contract for difference)
A derivative that lets you profit or lose on price differences without owning the asset; the main product forex and index brokers offer to retail clients.
In a CFD, the counterparty is the broker (or the broker's liquidity provider); prices track the exchange price, but the CFD itself isn't traded on an exchange. You can trade small lots, and overnight swap is paid or received.
The difference from futures: there's no central exchange and no real volume, and you depend on the broker. That's why choosing a regulated broker is critical.
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