CFD is short for 'contract for differences'. CFDs are derivatives.

They are a financial instrument which allows traders to trade an extremely wide range of products such as stocks, indices and commodities.

CFDs offer leverage, are easy to understand (because they are not like an option) and can be traded at low commissions. They are extremely popular in countries such as the United Kingdom and Germany.

CFD contracts offer numerous advantages:

Short selling: All CFDs can be sold short allowing you to also profit when markets go down.
Leverage: Leverage allows you to benefit form small price movements.
Fiscal: CFDs offer fiscal advantages.
Not an option: Unlike other derivatives such as options, warrants, certificates, etc CFDs are not optional in character. So no complex calculations, no price erosion due to time value and, no breaking one's head over the right strike price. 

If you have any questions, please, feel free to write me.