CFDs

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CFDs

Investing in the Stock Market

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CFDs (Contracts for Difference) are another way to invest in the stock market.

They have relatively recently become available to the private investor, rather than being the preserve of the professional traders.

They are an agreement for payment of the difference between the opening and closing price of shares at a set time.

A very exciting way to invest - is the potential for very high short term gains.

However CFDs are also involve very high risk and should only be considered if you fully understand these risks. In the worst case scenario, it is possible to make a loss far in excess of your original investment.

• For other adventurous investments, see our pages on Hedge Funds.