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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

Active investment definition

Active investment is a form of investment strategy that involves actively buying and selling assets in the hope of making profits and outperforming a benchmark or index.

An example of an active investor is a hedge fund manager, who constantly monitors the market and trades when they see an opportunity to make money.

Active investment differs from passive investment, which aims to track the movement of a benchmark or index instead of outperforming it. 

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Learn more about the terms associated with ETF trading with our ETF glossary.

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See all glossary trading terms

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