A CFD (Contract for Difference) is a derivative of a financial product and is used for trading. The CFD price behaves exactly like the underlying asset price.
There is no actual ownership of the underlying asset of reference. A CFD is therefore a derivative product where Saxo Bank is a counterparty to the trade. Since the product is not exchange-traded, it is said to be traded over-the-counter (OTC).
CFDs are traded on margin and can be sold short, making it possible to profit in falling markets or to hedge your stock positions.