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CFD
A contract under which the seller agrees to pay the buyer the positive difference, or the buyer to pay the seller the negative difference, between the daily opening and closing values of an asset as long as the positions are open.
(1) Like a futures contract, the contract for difference makes it possible to speculate on the price movements of the underlying without the need for ownership.
(2) On certain markets, especially in the United Kingdom and Australia, contracts for difference have become a very common stock investment method. Such contracts, which are largely traded over the counter, have begun trading on some exchanges.
Translations
Synonyms and variations
- Contract for difference