CFD (contract for difference)
A leveraged product for betting on rising or falling prices. Most retail investors lose money with it.
In short
As of 8 October 2026A CFD (contract for difference) is a leveraged product for betting on rising or falling prices without owning the underlying. For retail investors leverage is capped, for example at 5:1 for stocks, and you cannot owe more than your deposit. Providers must disclose how many retail accounts lose money, usually 70 to 80 percent.
With a CFD (contract for difference) you do not own the stock or index. You make a bet with the provider on the price difference, usually with leverage. For retail investors leverage is capped, for example at 5:1 for single stocks and 2:1 for cryptocurrencies. If your margin falls below 50 %, the position is closed out. You cannot owe more than your deposit.
Providers must state how many retail accounts lose money. Usually it is 70 to 80 %. BaFin regularly warns about dubious CFD platforms advertising quick profits, see our scam check.
Example: you put 1,000 euros with leverage 5 on a stock. If it falls 10 %, you lose 500 euros, half your stake. More on derivatives in general.
Related terms
Sources
As of 8 October 2026 · Educational content, not investment or tax advice.