London Aluminum (contracts for differences are not futures)

The contract for difference (CFD), that is, the contract for difference, is to buy and sell goods at the price without involving the physical transaction of goods. Therefore, there is no restriction on settlement and delivery in futures trading, and some people call it spot futures. Commodities different from contracts can theoretically be all things with floating prices, including national indexes, foreign exchange, futures, European and American stocks, precious metals and other commodities. Another advantage of CFD trading is that customers can carry out margin trading, so that customers can buy and sell all stocks, indexes and commodities without investing a lot of money.

CFD is a contract designed to hedge some delivery risks in spot transactions. Countries have strict regulations on separate CFD transactions, and Americans are not even allowed to do CFD for US stocks. CFD trading alone has no other significance than speculation.