The difference between CFDs and Futures trading is that the two parties do not transact in financial instruments on an expiration date or preset price when trading CFDs. While in Futures trading, the transaction between a buyer and a seller is executed at a predetermined future date and set price, CFDs trading (Contracts for Difference) is the exchange of the difference in the value of a security or an underlying asset between the opening and closing time of the contract. Trading CFDs may require less capital, but Futures trading may involve less risk.