CFD, i.e. Contracts For Differences, belong to the group of derived financial instruments, just as Forex products do. However, they are not based on currencies, their base values constitute shares, indexes and raw materials. You, as an investor, will participate in the changes - exactly reflected - in the valuation of the base value. You may speculate on the upside stock or ensure your stock portfolio by taking advantage of downside stock.
CFD trading at FCI Markets
The advantages are:
The CFD were developed so the client could benefit from the advantages of owning stock without actually really owning it. As the name of the CFD indicates, it is always a contract on a transaction based on the difference between the opening and closing value of a position. One of the advantages of CFD contracts is that, as with Forex contracts, they are negotiated on a margin. Thus you can achieve great results even with small amounts. See the benefits of CFD trading with FCI Markets.