CFD is the abbreviation of Contracts for Difference, which means contract for difference. A contract for difference can reflect the price change of a stock or index, and provide the profit or loss caused by the price change, without actually owning the stock or index futures. CFD of the contract for difference is traded together with the deposit. Just like the physical trading of stocks, the profit and loss are determined by your buying and selling price. CFD of contracts for differences has many advantages over traditional physical trading of stocks.

At first, the contract for differences was only an effective tool for large institutions to avoid securities risks. Now, it has become a common investment tool for global retail investors. The task of CMC Markets is to bring the benefits of post-exchange contracts to the vast number of retail investors.

More and more retail customers use CFD as a part of trading portfolio, and get substitutes for physical trading of stocks. Investors who use CFD trading contracts to obtain the price difference include short-term traders who trade in the day and long-term investors who look for more flexible trading tools to replace financing stock trading.

As for the risk you mentioned, you have to control it yourself ~ mainly by your own trading techniques and risk control awareness. The technical level of the general financial industry is universal ~ I will answer you so much first ~ If you have other aspects ~ you can contact me technically ~