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CFD lets traders capitalize on the price movements of derivatives or securities. Investors primarily use CFDs to place price bets on whether the underlying security price will increase or decrease. Traders anticipating an increase in price will purchase the CFD, while those anticipating a decrease in price will sell an opening position.

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong.