What you said is basically correct. CFD is a leveraged financial instrument.
To get a better idea of how CFD trading works, have a read of the PDS (Product Disclosure Statement) of any of the CFD providers. In their PDS, there are examples.
Different CFD providers have different margin requirements for the various CFD instruments they offer.
Be aware that as they are leveraged financial instruments, you can suffer big losses if a trade goes against you.
