In a nutshell a CFD (Contract For Difference) is an unlisted instrument that is an agreement between a buyer and a seller to exchange the difference in value of a particular underlying asset (like a share) for the period between when the contract is opened and when it is closed. The difference in value is determined by reference to the underlying asset. CFDs are unlisted and counterparty risk is not guaranteed by an exchange. It is therefore very important that you deal with a big financial institution like Sanlam that will not go bankrupt. Your counterparty will be Sanlam Private Wealth, part of the Sanlam Group.
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