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Time Stamps:
00:00 Intro
00:43 What's a CFD
01:33 Are CFDs worth it?
02:03 Final thoughts

What are CFDs?
Understanding the spread fee when it comes to CFD’s get a little more confusing. But first, what is a CFD? “CFD” stands for Contract for Differences. When you buy CFD’s, you are not buying the real underlying asset. You are basically buying an agreement between you and a CFD broker, eToro in this case, to exchange the difference in the value of a financial product between the time the contract opens and closes. So even though you don’t technically own the asset, you do still benefit or not from the price movement.

Why would you buy CFDs?
Well, CFDs give you more options when it comes to trading, like longing or shorting positions on assets. CFDs might also be cheaper on some exchanges than buying the real asset just because they are usually held for a shorter time period!

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