Contract For Differences - CFD
Definition of 'Contract For Differences - CFD'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 Definitions
Articles Of Interest
-
5 Equity Derivatives And How They Work
These derivatives allow investors to transfer risk, but there are many choices and factors that investors must weigh before buying in. -
Instead Of Stocks, Trade A CFD
The benefits of these securities abound, but high leverage also magnifies potential losses. -
How can I hedge against rising diesel prices?
In early 2007, the New York Mercantile Exchange announced that traders would be able to buy or sell futures contracts on New York Harbor ultra low sulfur diesel and U.S Gulf Coast ultra low sulfur ... -
Do I own a stock as of the trade date or the settlement date?
When it comes to buying shares, there are two key dates involved in the transaction. The first date is the trade date, which is simply the date that the order is executed in the market. The second ... -
Futures Fundamentals
For those who are new to futures but want a solid understanding of them, this tutorial explains what futures contracts are, how they work and why investors use them. -
Uncovering Oil And Gas Futures
Find out how to stay on top of data reports that could cause volatility in oil and gas markets. -
Trading Is Timing
Learn how to make gains even if you don't get in at the right time. -
Leading Economic Indicators Predict Market Trends
Leading indicators help investors to predict and react to where the market is headed. -
Exploring Non-Dollar Currencies For Forex Trading
Learn how investments in foreign currencies can diversify your portfolio. -
Candlestick Charting: What Is It?
Discover the components and basic patterns of this ancient technical analysis technique.
Free Annual Reports