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CFDs stand for contract for differences. A CFD trader does not own the financial asset rather gets his profits or losses by speculating on an instrument. A CFD broker provides a medium for an investor to carry out their transaction, and in the meanwhile, the company makes money by charging a fixed commission or through spreads. Advantages of Trading CFDs There are tons of CFD brokers in the market, and the number is ever-growing due to its popularity. Let us discuss a few important benefits of trading CFDs. Leverage. Traders can use a significant amount of margin when trading CFDs.CFDs stand for contract for differences. A CFD trader does not own the financial asset rather gets his profits or losses by speculating on an instrument. A CFD broker provides a medium for an investor to carry out their transaction, and in the meanwhile, the company makes money by charging a fixed commission or through ► The FINANCIAL Finance