Printer Friendly
Dictionary, Encyclopedia and Thesaurus - The Free Dictionary
1,507,550,041 visitors served.
forum mailing list For webmasters
?
New: Language forums
Dictionary/
thesaurus
Medical
dictionary
Legal
dictionary
Financial
dictionary
Acronyms
 
Idioms
Encyclopedia
Wikipedia
encyclopedia
?

Contract For Differences - CFD

    0.02 sec.
Contract For Differences - CFD
A futures contract that is settled in cash. That is, the underlying does not trade hands, and neither party needs to own it. Two parties simply designate each other as seller and buyer, and at the close of the contract one party pays the other the difference in value between the underlying's opening and closing prices, multiplied by the number of shares specified in the contract. If the difference is positive, the seller pays the buyer; if the difference is negative, the buyer pays the seller. An advantage to CFDs is the fact that they are exempt from taxes like stamp duties, because the underlying asset does not actually exist. However, they tend to work better as short-term investments because they are subject to daily financing charges.


How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content.
?Page tools
Printer friendly
Cite / link
Email
Feedback
Add definition
? Mentioned in
No references found
 
Financial browser? ? Full browser
 
 
Financial Dictionary
?

Disclaimer | Privacy policy | Feedback | Copyright © 2009 Farlex, Inc.
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional. Terms of Use.