The contract for differences, known as CFD is a financial derivative. As such are established on an underlying and allow us to operate either upward or downward. It is a relatively new product in Spain, although in other countries were well established. The underlying can be of various types. The best known are CFDA s stock, but there are brokers that offer CFDA s on indices, currencies or commodities. There are three major advantages of the CFDA s relative to the traditional investment: firstly the ability to access markets not traditionally accessible to the retail client, as the commodity or index. Access to such markets is done through other derivatives such as futures, which require more guarantees. In the operation CFDA s assurances that future are lower, allowing the small investor access to these markets.

The second advantage is the ability to operate either upward or downward. You can sell without having a perfectly CFD purchased before, as happens with other types of derivatives and with the advantage that they have no expiration date. The third advantage is that it allows financial leverage. Since we only have to deposit a small amount as collateral, you can buy more of the same underlying capital. This warranty puts the broker, but typically for Spanish market shares is 10% of the total. The operation CFDA s as simple as when you go to buy shares at the normal market, with the advantage of leverage.