An agreement to pay linked to the change in some underlying number, not necessarilly a security.... more on: Contract for difference
a contract between a buyer and a seller to pay the difference between the buy and sell price based on an underlying instrument when the contract is settled
an instrument issued by a financial institution entitling the purchaser to take gains or losses arising from movements in the market price of, for example, a share or index
a product traded on margin, which allows you to mirror the performance of the underlying share (price, performance, dividends etc), without the added cost of stamp duty
a financial contract for the purchase of electricity. This contract enables customers to purchase power under a fixed price contract without notifying the ISO of the contract
Contract designed to make a profit or avoid a loss by reference to movements in the price of an item. The underlying item cannot change hands.
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.
A contract for difference (or CFD) is a contract between two parties, buyer and seller, stipulating that the seller will pay to the buyer the difference between the current value of an asset and its value at contract time. (If the difference is negative, then the buyer pays instead to the seller.) Such a contract is an equity derivative that allows investors to speculate on share price movements, without the need for ownership of the underlying shares.