Price exposure without ownership
A CFD is a derivative that settles changes in the price of an underlying reference market. Holding a CFD does not normally give you ownership of the referenced asset.
How a result is calculated
For a simple linear contract, gross profit or loss depends on the difference between opening and closing prices, multiplied by the contract exposure. Spread, commission, financing and currency conversion can change the net result.
Read the contract first
Contract size, trading hours, minimum volume, financing and margin are product-specific. Similar-looking symbols can have different specifications. Check the actual contract rather than relying on the name.
Understand the risk
Leverage magnifies losses as well as gains. Price gaps and limited liquidity can affect exits. Read the risk disclosure and consider whether you can bear the possible loss before trading.
Frequently asked
Do CFDs give me ownership of an asset?
A CFD provides contractual price exposure; it is not the same as owning the underlying asset.
Further reading
FCA: Contracts for difference ↗External educational references do not imply endorsement, affiliation or regulation of QB Capitals.
Leveraged forex and CFDs involve significant risk of loss. Demo results do not predict live performance. Understand the risks ↗