A Contract for Difference (CFD) is a financial contract between two parties, typically a buyer and a seller, where the seller will pay the buyer the difference between the current value of an asset and its value at the time the contract is made. This allows investors to speculate on price movements in various financial markets without actually owning the underlying asset. CFDs are traded on margin, meaning investors can leverage their positions to potentially increase profits or losses. They are popular due to their flexibility, ease of access, and ability to trade on a wide variety of assets such as stocks, commodities, and cryptocurrencies. However, CFDs also come with risks, such as the potential for high volatility and the possibility of losing more than the initial investment. Overall, CFDs can offer both opportunities and challenges for traders looking to make profits in financial markets.