CFDs are complex financial instruments and carry a high level of risk due to leverage. A significant proportion of retail investors incur losses when trading leveraged products such as CFDs. You should carefully consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your capital.
If you’re wondering what a forward is, it’s an agreement between two parties to buy or sell an asset at a fixed price on a future date. Unlike futures, this contract is traded over-the-counter (OTC) and can be customized in terms of amount, term, and conditions. Both parties are obligated to fulfill the agreement upon maturity.