The CFD market was developed in the early 90s, mainly to attract exchange speculators with a small capital to shares trading.

Initially, it was impossible to trade stocks without registration of ownership of the given asset. Over time, to make this market more accessible, Contracts For Difference were introduced for trading financial instruments, basic goods, and other various exchange instruments.

CFD is a Contract For the Difference in prices. It’s a financial instrument that’s used to buy shares online. Stock trading is possible due to the price going up or down, which traders use to open “Buy” or “Sell” positions in order to catch the current trend. This type of shares trading is about speculation on the fluctuations in the prices, without the ownership of the securities themselves. Typically the price of the contract for buying shares online is not fixed and changes all the time.