CFD is the abbreviation of "Contract for Difference". It is a financial derivative, a contract that can track the price changes of the underlying assets, and investors can get the income of the difference when the contract expires.

Simply put, CFD is a speculative tool, which gains the benefits of price changes by buying and selling contracts. Investors can use CFD to trade foreign exchange, stocks, indexes, commodities and other financial products. CFD is characterized by leveraged trading, and investors can conduct high-value transactions only by paying a small amount of margin. However, leveraged trading also increases risks, so investors should carefully evaluate risks and benefits and abide by corresponding laws and regulations.