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Contract For Differences Like any other financial instrument

Contract For Differences Like any other financial instrument, CFDs have their own advantages and disadvantages. You need to understand them well before investing. In the light of the concerns pointed out by market participants in the course of the hearing that a ban on the sale of CFDs with an additional payments obligation (Nachschusspflicht) to retail clients would endanger the business models of a large number of CFD providers operating with an Agency-Model rather than a Dealing-Desk-Model, BaFin noted that some providers already offer CFDs without an additional payments obligation (Nachschusspflicht) or have announced that they will offer such products in future due to the planned product intervention. A CFD is a contract between a trader and a broker, and derives its value from another underlying security. Trading CFDs offers many benefits. For example, it’s not necessary to outlay the full amount in order to have access to the underlying stock, index or commodity price movements. This is due to the fact that you are trading on margin, and only need to invest a small percentage of the actual price.related articles: