(CFD) or Contract for Difference, is an agreement between two parties to exchange the difference between the opening price and closing price of a contract. An arrangement made in a futures contract whereby differences in settlement are made through cash payments, rather than the delivery of physical goods or securities. This is generally an easier method of settlement because losses and gains are paid in cash. CFD provides investors with the all the benefits and risks of owning a security without actually owning it. CFD trading is also a leveraged product, allowing you to maximise your market exposure for only a small fraction of the investment you would typically need to trade the underlying asset directly. To help you to make those all-important trading decisions, we also have the latest market news, customisable charts and market profile information, available free on our trading platform.
(Spot market) is a commodities or securities market in which goods are sold for cash and delivered immediately. Contracts bought and sold on these markets are immediately effective. A futures transaction for which commodities can be reasonably expected to be delivered in one month or less. Though these goods may be bought and sold at spot prices, the goods in question are traded on a forward physical market.
The spot market is also called the "cash market" or "physical market", because prices are settled in cash on the spot at current market prices, as opposed to forward prices.The spot market or cash market is a public financial market in which financial instruments or commodities are traded for immediate delivery. It contrasts with a futures market, in which delivery is due at a later date.