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CFD Trading - How CFDs Are Being Used by Day Traders
Many day traders in various markets are beginning to use CFDs, or contract for difference trading. These types of contracts allow investors to get a leg up on certain markets when they can make accurate predictions of prices in either short or long positions. CFD trading started around the 1990s in England, and was based on equity swaps. CFDs were originally not taxed, which was an added benefit.