Is a retail forex transaction a forex contract for difference (CFD)

Beginner Questions
1

Hi,

Quick question. Is a retail transaction a forex contract for difference?

Background info:
I am reading The Different Ways To Trade Forex Article.
I cannot post the link to the article because I am a new user. I provide a screenshot of the link.

Picture of link
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The four following statement is confusing for me.

  1. When a spot forex transaction is not physically delivered but just indefinitely rolled forward until the trade is closed, it is known as a “rolling spot forex transaction ” or “rolling spot FX contract “. In the U.S., the CFTC calls it a “retail forex transaction “. - I understand this

  2. Retail forex transactions are closed out by entering into an equal but opposite transaction with your forex broker. -I understand this

  3. A forex CFD is an agreement (“contract”) to exchange the difference in the price of a currency pair from when you open your position versus when you close it. -I understand this

  4. So to make this differentiation clear, a rolling spot FX contract is ruled as a CFD. (In the U.S., CFDs are illegal so it’s known as a “retail forex transaction”) I am confuse now

I am confuse because statement 1 says, rolling spot forex transaction** ” or “rolling spot FX contract “. In the U.S., the CFTC calls it a “retail forex transaction

and statement 4 says “a rolling spot FX contract is ruled as a CFD. (In the U.S., CFDs are illegal so it’s known as a “retail forex transaction”)”

SO, THE BIG QUESTION IS THIS is a rolling spot FX contract (retail forex transaction) a Contract for difference (CFD)?

Thank for taking the time to read my question.

2

Good question.

Despite the wording of US legislation, I had always assumed that because we are not buying/selling actual currency, nor the time-limited option to buy/sell actual currency, all private retail forex transactions are for contracts for difference, in effect if not in actual title.

In addition, to my mind, another way of expressing “CFD” is a “bet”; e.g. we are not selling actual USD to buy actual EUR, we are betting the exchange rate of EUR/USD is going to rise.

3

Dear Tommor,

Thank you for the clarity.

Never Give Up,

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