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A CFD is an agreement between a broker or marketmaker and an investor to pay the difference between the opening and closing price of a contract.
With a CFD, the investor does not take delivery of the underlying shares, and thus there is no stamp duty to pay. CFDs are a derivative instrument and considered higher risk than the straightforward purchase or sale of the share.
Securities and Derivatives markets may be subject to rapid and unexpected price movements and past performance is not necessarily a guide to future performance. Trading in these markets is generally considered to be suitable only for the more experienced investor as it carries a high degree of risk. An investor may not receive back the amount of their original investment and in certain circumstances may be liable for a sum that is greater than their original investment. If in any doubt, please seek independent financial advice.