Contracts for difference (CFDs) and spread betting have become very popular in the countries that allow them – which is most of the world, with the notable exception of the USA, where the Securities and Exchange Commission (SEC) does not permit them. They are leveraged financial products that are available on a large range of different financial instruments. They were invented in the 1990s, primarily for hedge funds and institutional investors, but spread to retail traders later in the decade.
Going lengthy on a CFD place is akin to purchasing a share or index on…