CFD stands for Contract for Difference. It is a type of financial instrument that allows traders to speculate on price movements of underlying assets, such as stocks, currencies, commodities, and indices without actually owing the assets.
In a CFD trade, The trader enters into a contract with the broker to exchange the difference in the price of the underlying asset between the opening and closing of the trade. If the trader correctly predicts the direction of the price movement, they can profit for the difference in price, but if the price moves against them they will incur a loss.