When you purchase or sell a contract for difference (CFD), you agree to swap the price difference between an asset when your position is opened and when it is closed. We’ll go over some of the primary features of CFD trading, such as leverage, short selling, and hedging, and why they’re so appealing to traders. Why trade CFDs? CFD trading is a derivatives market, which means you trade prices generated from the underlying market rather than the actual market itself. It’s a popular trading method since it allows traders to: Leverage Since you just have to deposit a percentage of the whole value of your trade to create a position…