Benefits of Using CFDs for Trading in Germany
For more than a decade, CFDs, or contracts-for-differences, have been one of the most popular forms of financial derivatives. These contracts are called ‘derivatives’ since their value is derived from the price of an underlying asset.
A contract for differences is the type of derivative that is used for insurance. It is a contract between two parties where one party, the “insurer,” is selling protection. They will pay the other party, the “insured,” if a specified event happens.
Most CFD traders in Germany probably trade shares and indices, but many other assets can be traded through this form of contract.
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