margin

CFD products are usually traded on margin.

Margin is an efficient way to use your capital as instead of paying the full value of your position you are only required to pay a percentage deposit. the level depends on the instrument you are trading, and the trading platform and ranges from 1% - 10% of your total position value.

However, losses will also be magnified so margin trading is not necessarily for everyone. So you really need to work out some exampls of what happens to your trades, and how a small move impacts your pl.