CFD Trading, or Contract for Difference trading, is a financial trading method that allows investors to speculate on the price movements of various assets without actually owning them. Instead of buying the asset, traders enter into a contract with a broker, agreeing to exchange the difference in the asset's price from the time the contract is opened to when it is closed. This enables traders to profit from both rising and falling markets. One of the main advantages of CFD Trading is the ability to use leverage, which means traders can control larger positions with a smaller amount of capital. However, this also increases the risk, as losses can exceed the initial investment. It's essential for traders to understand the risks involved and to use risk management strategies when engaging in CFD Trading.