CFD trading stands for Contracts for Difference trading. It is a type of derivative trading that allows traders to speculate on the price movements of underlying assets such as stocks, indices, commodities, and currencies without actually owning them.
CFD trading enables traders to take advantage of both rising and falling markets by allowing them to go long or short on an asset at any time, so they can profit in either a rising or falling market. This makes it an attractive form of trading for both experienced and novice traders.
Another advantage of CFD trading is that it offers traders higher leverage, meaning you can trade with more money than what you initially invest. Leverage allows traders to potentially increase their profits, but also increase their losses if they are not careful with their risk management strategies.