CFDs are a leverage product and can involve a significant risk of loss. Trading CFDs may not be suitable for all, therefore you should ensure that you understand the risks involved and take into account your individual circumstances.
Trader's Glossary

What is Derivative?

A derivative is a financial instrument that has no intrinsic value in and of itself; rather it derives its value from some other financial instrument, asset, index, exchange rate etc. CFDs, options, swaps, forwards and futures are a few examples of derivative contracts. The past few decades have seen the value of the derivative market increasing exponentially, with the particulars of the contracts themselves becoming ever-more complex. It has been estimated that the derivatives market could be worth as much as $1.2 quadrillion, dwarfing the annual gross world product (GWP) which, by comparison, was only around $70 trillion in 2012.