Contract for Difference (CFD)

A contract in which the buyer does not actually own the underlying asset (stocks, commodities, gold, currencies, crypto assets, etc.) but agrees with the seller of the contract for difference to settle the difference in price between the present and a future point in time. When opening a "long position," the buyer expects the price to rise and if it does, they will make a profit at the seller’s expense. For a "short position," the logic is that the buyer expects the price to fall.