When you trade CFDs, you buy a certain number of contracts on a market if you expect it to rise and sell them if you expect it to fall. The change in the value of your position reflects movements in the underlying market. You can close your position any time when the market is open.
When you trade CFDs, you buy a certain number of contracts on a market if you expect it to rise and sell them if you expect it to fall. The change in the value of your position reflects movements in the underlying market. You can close your position any time when the market is open.
The primary reasons for the ban are concerns over the lack of transparency and the risks associated with leveraged trading. CFDs are over-the-counter (OTC) products, meaning they are traded directly between parties without going through a regulated exchange.
CfDs incentivise investment in renewable energy by providing developers of projects with high upfront costs and long lifetimes with direct protection from volatile wholesale prices, and they protect consumers from paying increased support costs when electricity prices are high.