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David Carter

What is the difference between Forex and CFD Currency Trading?

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CFD stands for Contract for a difference. It is an agreement between two parties to exchange the difference between the opening price and closing price of a contract. The reason CFDs are used is that they make global access cheaper and there is the chance to move in and out a position very swiftly.

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The biggest difference between a CFD and a forex contract is the fact that CFD's cover a diverse range of markets. While forex is limited to the currency markets, CFD contracts can range from a stock CFD, commodity CFD or indices CFD. ... With forex, the lot size is uniform regardless of whether you trade EURUSD or USDCAD.

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