CFDs refers to the Contract for Difference. As the name suggest it implies a contract between buyer and seller which states that buyer will pay the seller the difference between current value of an assets and its value at the time of contract.
CFDs provide investors an opportunity to make good money from the price fluctuations without owning the particular assets. This is because the value of CFD contract doesn’t consider the value of an assets instead it consider only the changes in the price from entry to exit.