CFDs allow traders to trade in the price movement of securities and derivatives. Derivatives are financial investments that are derived from an underlying asset. Essentially, CFDs are used by investors to make price bets as to whether the price of the underlying asset or security will rise or fall. A CFD account is a trading account offered by brokers that allows investors to trade CFDs. Opening a cfd account can be a strategic move for traders seeking exposure to various financial markets without owning the underlying assets.