Contract For Differences - CFD

What Does Contract For Differences - CFD Mean?
An arrangement made in a futures contract whereby differences in settlement are made through cash payments, rather than the delivery of physical goods or securities.

Investopedia explains Contract For Differences - CFD
This is generally an easier method of settlement because losses and gains are paid in cash. CFDs provide investors with the all the benefits and risks of owning a security without actually owning it.

Related Terms

Fail
Futures Contract
Non Deliverable Swap
Settlement Date
Trade Date
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