CFDs are derivatives products that allow you to trade on live market price movements without actually owning the underlying instrument on which your contract is based. You can use CFDs to speculate on the future movement of market prices regardless of whether the underlying markets are rising or falling.
Investopedia presents a great definition:
A CFD is a tradable instrument that mirrors the movements of the asset underlying it. It allows for profits or losses to be realized when the underlying asset moves in relation to the position taken, but the actual underlying asset is never owned. Essentially, it is a contract between the client and the broker. Trading CFDs has several major advantages, and these have increased the popularity of the instruments over the last several years.
|AUS200||Australia’s main stock index based on 200 leading companies.|
|EUSTX50||A stock index of Eurozone blue-chip stocks with a goal to provide sector leaders in the Eurozone.|
|FRA40||A benchmark French stock market index including 40 companies.|
|GER30||A stock market index consisting of 30 German companies trading on the Frankfurt Stock Exchange.|
|HK50||Measures the performance of the 50 top Hong Kong listed companies.|
|JPN225||A stock market index for the Tokyo Stock Exchange based on 225 Japanese companies.|
|NAS100||A US stock market based on technical companies.|
|SPA35||A benchmark stock market index of Spain’s principal stock exchange.|
|SWI20||Measures the performance of the top 20 Swiss companies.|
|UK100||An index of 100 high capitalization companies listed on the London Stock Exchange.|
|US30||A US stock market with 30 component companies.|
|US500||A US stock market index based on 500 leading companies.|
|US2000||A US stock market index based on 2000 leading companies.|