About CFDs in essence,

CFC is an acronym for Contract for difference". CFDs are used in the financial markets as a futures contract between two parties where the seller agrees to pay the buyer the difference between an asset's price at the time of the contract and at the end of the contract. If the asset loses value, the buyer must pay the difference in value lost. In essence, a CFD is a financial derivative which allows a trader to profit from bearish and bullish markets. They are commonly used for market speculation and-and to hedge positions enabling dealing with assets without purchasing them. CFDs were exclusively traded over-the-counter until 2008 when the Australian Securities Exchange began listing exchange-traded CFDs. In the last decade the popularity of CFD trading has increased consistently, reaching a number of active traders, reported in the chart below: