What are cfds?

Cfds are contracts. These contracts represent a deal that has been made between the seller  and the buyer. In a cfd contract it stipulates that the seller of the CFD contract will pay the buyer the positive difference between the current value of an asset and its value at the contract time. And if the difference is negative then the buyer has buy the seller the difference.

Cfds example:

Let’s say you buy a cfd stock of Apple when Apple’s stock price was $40,-
If the current stock price is $30 then you would have to pay the seller $10,-
However if the current stock price is $100, – you would make a profit of $60,-