Answer for What is CFD trading?

Hi Jaa Ven,
Generally, i’m against all kinds of “trading”, as the purpose of trading is to gain from the rise in the price of the securities. Value Investing seeks to buy a dollar item for 60 cents, and buying companies (or dollar) that continually grows in its value to be worth more and more.
CFD is like a ferrari car with jet engine on its back. The riskiness of it depends on the driver rather than the product. It is highly leveraged product, and most speculators uses it to speculate. However, CFD is a very powerful tool in the hands of a sophisticated investor (just like a ferrari car with jet engine on its back is a very good car for Michael Schumacher). 
I’ve also shared more on the video below (the ending part on questions about CFD). :
Hope it helps.

About The Author

Peter Lim

Investor (Not Speculator).