WHAT IS A CONTRACT FOR DIFFERENCE (CFD)?
Contracts for difference (CFDs) are contracts between two parties to settle at the close of the contract the difference between the opening price and closing price of a share specified in the contract. In other words, CFD trading is opened at a specific prevailing market price and closed at the reigning market price; the trader is then entitled to the difference. A CFD is a contract of a standard quantity of a specific underlying asset, usually a listed share. Generally this means that one CFD contract is equal to one underlying share. Please note the following with regards to CFD trading with PSG Online: