CFDs or (Contract for Difference or Contracts for Difference) are a popular form of derivative instruments. Derivatives are financial instruments that allow you to trade an asset in the global markets without actually owning it. Common examples of derivative instruments are options, futures or swaps. With CFDs you don’t have ownership of the actual assets. Rather, you exchange the price difference of the underlying asset, from the time that the contract was opened to when it is closed. This closing date or contract expiry date is not fixed, making CFDs different from other forms of derivatives, like futures. Your contract can be for the short term or continue for the long term.