A CFD, also known as a "contract for difference", is a contract between a broker and a trader, regarding the price of an underlying instrument. It is traded in the form of opening a position in the direction of a certain instrument price and the amount of shares. If the position moves in favor of the trader, then the broker will pay the difference between the opening price and the closing price, multiplied by the amount of shares in the contract. If the position moves against the trader, this will result in paying the difference to the broker. Such contracts are non-delivery contracts.