FD (Contract for Difference) trading is a financial product that allows investors to invest in the price fluctuations of various assets, such as stocks, commodities, indices, foreign exchange, and cryptocurrencies, without actually owning the assets. In CFD trading, investors agree to trade the difference in asset prices between the time a position is opened and the time it is closed.
Through CFD trading, traders can generate profits in both bull markets (buying long) and bear markets (selling short). CFDs are frequently utilized in short-term strategies such as day trading or swing trading, and they provide leverage, enabling the management of larger positions with less capital.