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system
what am i actually buying when trading in cfds
user
the product itself is a derivative as it derives its value from another stock or commodity.  it's similar to a us option, which offers (in the case of a 'call') the right, but not the obligation to buy a stock at a predetermined price before a certain date. but, unlike the us option, instead of buying the stock, the contract is only closed out in cash. i've made the analogy to betting, so i believe it to be a fair comparison. i hope this question is theoretical. you should never buy a financial instrument with no clue how it works.
assistant