CFD
Contract for Difference — a derivative at a broker that tracks the price of an underlying market without requiring you to own the underlying instrument.
Definition
A CFD (Contract for Difference) is a derivative offered by a broker whose result settles as the difference in price — you track the price of the underlying market without buying the stock, index or currency pair itself. It usually involves a spread, leverage and margin terms set by the broker.
Example
You open a CFD on EUR/USD at an EU-regulated broker: you do not buy actual euros, only a long or short position settled against the exchange rate. With leverage and a deposit in PLN, the result grows or shrinks with every pip of movement, and the costs include the spread and any overnight charge.
Anti-example / common mistake
A CFD is not a stock held in a brokerage account — you are not a co-owner of the company and you do not have the same rights as when you buy a security on the GPW. Another mistake: treating CFDs as a “safer” equivalent of futures simply because the account is easier to open.