Contract for differences: Difference between revisions
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imported>Doug Williamson No edit summary |
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A CFD provides an investor with the benefits and risks of ownership of a security (or other market position) without actually owning it. | A CFD provides an investor with the benefits and risks of ownership of a security (or other market position) without actually owning it. | ||
Examples include Forward Rate Agreements (FRAs) | Examples include Forward Rate Agreements (FRAs), Non-Deliverable Forwards (NDFs) and swaps. | ||
Also known as a Contract for Difference. | Also known as a Contract for Difference. | ||
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* [[Forward rate agreement]] | * [[Forward rate agreement]] | ||
* [[Non-deliverable forward]] | * [[Non-deliverable forward]] | ||
* [[Swap]] | |||
* [[Equity swap]] | |||
Revision as of 16:06, 25 March 2013
(CFD). An arrangement whereby the difference in price between two underlying securities or financial instruments (one of which could be cash) is settled in the future in cash, rather than by the delivery of the securities or instruments. Effectively the CFD is a spread bet on the outturn market price or rate.
A CFD provides an investor with the benefits and risks of ownership of a security (or other market position) without actually owning it.
Examples include Forward Rate Agreements (FRAs), Non-Deliverable Forwards (NDFs) and swaps.
Also known as a Contract for Difference.
