What are CFDs?

A Contract for Differences (CFD) is a derivative investment instrument that can be used to speculate on the movement of the reference price of an underlying asset without directly trading the underlying asset. CFDs generally involve stocks, indexes, currencies or commodities.

CFDs are difference contracts between two parties in which the buyer agrees to pay to the seller the difference between the current value of an Underlying Asset and its value when the position is closed, multiplied by the agreed number of contracts. In other words, when you trade using CFDs, you are not buying or selling the Underlying Asset itself. On top of this operation, the currency conversion to euros would have be considered if the underlying asset is traded in a non-euro currency.

CFDs are also leveraged, meaning they let you trade without having to put up the full cost of the underlying asset, depositing only the Margin required for the trade. This feature of CFDs can  be both an advantage and a disadvantage at the same time, since it makes this financial instrument a complex, high-risk product, meaning the investor can quickly lose their money due to the leveraging effect.

Please see the important information in the following attachments: Legal Notice.