CFD stands for “Contract for Difference”. CFD trading means you buy and sell CFDs, speculating on the price of various assets, e.g. shares, forex, commodities, without actually buying the underlying assets. When you trade CFDs, you only pay a fraction of the cost of the underlying asset and leverage allows you to still gain exposure to a large position. So, in terms of initial capital, it seems cheaper, but the risk is much higher as your profit or loss is calculated based on the full size of your position and you may lose more than what you put in.