Contract for Difference (CFD) is a financial instrument that allows traders to speculate on price changes of financial assets without owning the asset physically. CFDs play an important role in Forex trading because they allow access to currency movements without owning the currency. With CFDs, traders can take advantage of price movements both up (long) and down (short), thereby increasing flexibility and profit opportunities. It has become a much-needed instrument in Forex trading as it allows for more efficient trade execution and portfolio diversification without requiring direct asset own…