A leveraged contract with a broker on the price change of an asset, without owning it.
CFDs allow high leverage on stocks, indices, currencies, commodities and crypto. They are banned for retail investors in the US. In the EU and UK, retail leverage has been capped since 2018 (e.g. 30:1 on major currency pairs, 5:1 on single stocks) with negative-balance protection, and providers must disclose the share of retail accounts that lose money – typically 70% or more.