What is Contract for Difference & Equity?

Contracts For Difference (CFDs) are specialized and popular Over The Counter (OTC) financial derivative products which enable you to trade on the price movement of financial assets, including Indices Futures, Commodity Futures, Shares, and Exchange Traded Funds, without actually owning the underlying Asset. The main benefit of trading CFDs is the flexibility to trade against price movements without actually buying or selling the physical financial assets. Trade XN CFDs derive their price from the underlying asset. You can trade CFDs if you believe the price of a financial instrument is likely to go up in value (strengthen), and also if you think it is likely to go down (weaken). Your profit or loss in online CFD trading is determined by the difference between the price you buy at and the price at which you sell.

Equity the secured part of the client account, including open positions, that is bound to the Balance and the Floating rate (profit/loss) by the following formula: Balance + Floating + Swap, i.e. the funds on the client account minus the current loss of the open positions, plus the current profit of the open positions.

The price at which the market is prepared to buy a product. Prices are quoted two-way as Bid/Ask. In FX trading, the Bid represents the price at which a trader can sell the base currency, shown to the left in a currency pair. For example, in the quote USD/CHF 1.4527/32, the base currency is USD, and the Bid price is 1.4527, meaning you can sell one US Dollar for 1.4527 Swiss francs. In CFD trading, the Bid also represents the price at which a trader can sell the product.