CFDs, or Contracts for Difference, are financial instruments that allow traders to speculate on the price movements of various assets without actually owning them. Instead of buying or selling the underlying asset, traders enter into an agreement to exchange the difference in the asset's price from the time the contract is opened to when it is closed. This enables potential profits from both rising and falling markets. CFDs can be used for a wide range of assets, including stocks, commodities, currencies, and indices. They are popular due to their flexibility and the ability to use leverage, which can amplify both potential gains and losses. However, trading CFDs also carries significant risks, and it's important for traders to understand these before participating.