An abbreviation of contract for difference. An agreement to pay an amount based on the change in some underlying number, not necessarilly a security.... more on: CFD
Contract for difference. An OTC derivative, similar to a future, the value of which is determined by, for instance, the difference between an equity's current price and its future price, or as another example, the difference between one equity's price and that of another equity. For tax reasons, these instruments are especially popular in the U.K.
Contract for differences. A private contract arrangement between Pool member generators and Pool member suppliers, for the arrangement for the purchase of generated electricity.
Contracts For Differences
Contract for Deed
Contract For Difference. A leverage share trading product. Go to www.minicfds.com for further information
CFD's or "Contracts For Difference" are equity or index derivatives which make it possible for investors to participate in the underlying's fluctuations without having to own it and thus offer particularly interesting leverage.
A CFD or "contract for difference" is a financial instrument (a derivative) that has the same price movement as the underlying stock. It is used to trade stocks on margin. Because you don't own the physical stock, you create some important trading benefits that stocks don't offer you. For more information please go to our CFD tutorial, found under Trading', then select 'CFDs', then 'CFD Intro'
See Contract for Difference.
(Contracts for Difference). This refers to the contractual arrangements suppliers have with the generators to purchase specific amounts of electricity.
Contract for differences. 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.
Abbrev, for Contracts For Difference.
Contract for Difference. A financial agreement in which a customer and supplier agree on a fixed power price that is tied to a market index. If the market index price is higher than the fixed price, the supplier pays the customer an agreed percentage of the difference. If the market index price is lower, the customer pays the supplier a percentage of the difference. Such a contract may exist between an energy supplier and customer, or between a third party (ABM) and a supplier or customer. Through such a contract the parties can mitigate the price volatility in a Spot Market.
Contract for Difference, a method by which to trade.
See contract for differences.
contract for differences. A financial arrangement used in swaps and other financial dealings in which the arithmetic difference between two similar but opposite transactions is exchanged rather than the total amounts involved. The term CFD is used especially in oil to refer to these types of price swaps in the short-term Brent crude oil market, which provide a way to hedge the difference in price between spot supplies known as "dated" and first-month forward supplies known as "15-day."