It is a derivative contract by which the difference of the price of a financial instrument at the time of contract opening and the price at the time of closing it is exchanged. both long and short positions can be assumed.
The CFD reflects the performance of said asset, for example stocks, commodities, indices, currencies among others, without the need to have the physical property of the instrument itself.
CFDs are otc derivative instruments, that is, they are not traded on the stock market.
CFDs demand the deposit of a small amount by the investor as a guarantee, this allows a more efficient management of their capital, since only a small proportion of the global value of their position is mobilized.
