Should you consider CFDs?

Most investors who want to use leverage or to sell shares short begin by using spread betting, but this isn’t the only option. More experienced traders sometimes use an alternative to spread betting called contracts for difference (CFDs).

These are offered by many brokers and spread betting firms. They work in a similar way to spread bets, but with some important differences that can make them more cost-effective in certain situations.

How CFDs work

A CFD is a contract between a buyer and a seller in which the two sides agree to pay each [...]

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