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Are You Wondering if CFDs are a Derivative Trading Product? Watch this short video to see if CFDs to meet the criteria. You may be surprised to know the background on CFDs in relation to being a derivative. In a nutshell, a derivative trading product or trading instrument, is something that derives its price from an underlying market, such as a futures or stock exchange. There are many styles of derivative products and all of them allow you to leverage your funds. So are all derivative products risky? No. The risk of most products comes from not knowing how to use them. You need to have all the facts about trading derivative products in order to make an educated decision. You will find many fund managers and traders use derivatives such as CFDs, Futures and Options to hedge and minimise the risk on their portfolio. So they don't even use the derivatives for speculation but instead as a risk mitigation tool. There are a number of ways to use derivative products such as contracts for difference or CFDs. Watch the video to find out more and good luck with your CFD, Forex, Futures, Options and derivative trading. Connect with us here: Web: http://www.learncfds.com Twitter: / learncfds LinkedIn: / ashleyjessen