The CFD, or "Contract for Difference" is a retail investment tool that is common throughout Europe, and is quickly being adopted throughout the rest of the financial world. Originally used by institutions and major corporations to manage exposure risk on the equity market, CFDs ("Contracts for Difference") have found their way into retail traders' portfolios and as an efficient alternative to physical share trading.
CFDs (Contracts for Difference) offers you all the benefits of trading financial products without having to physically own them; they are a way of buying and selling risk.
Contracts for Difference are agreements between traders and brokers (buyers and sellers) to mark the price of any given financial instrument when the CFD is opened, then settle the difference between the opening price and closing price of said financial instrument, multiplied by the number of lots mentioned in the trade.
CFDs can be opened on for equities, stock indices, futures, commodities, and many other instruments, and CFD trading is done on "margin," so an initial deposit by the trader controls a much larger amount of money for buying/selling financial instruments. CFDs are often traded on approximately 1% margin, where a $1000 deposit allows control of $100,000 for the sake of transactions.
CFDs on Commodity Futures Introduction
GTL's CFDs on Commodity Futures offer the quickest way to trade some of the world most popular Currency, Stock Index, Energy, Grains, Metals and interest-rate contracts on competitive spreads. Unlike in the exchanges you can have immediate fills of all the future products without any delay in reporting and any slippage, and can have guaranteed fills so as to avoid over loss in any market conditions.
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