Contract for Difference (CFD)
Also called: CFD, CFDs, spread betting
A CFD is a derivative that pays the change in an asset's price without owning it, offered with high leverage by retail brokers. Regulators require these firms to publish the share of retail accounts that lose money, and the disclosed figures cluster between 70% and 85%. CFDs are banned for US retail investors, and leverage limits were imposed across Europe for the same reason.