Contracts for Difference. Futures and Options contracts can also be referred to as contracts for difference. These can be options and/or futures on the FTSE 100 index or any other index or share, commodity or currency. However, unlike other futures and options, these contracts can only be settled in cash. Investing in contracts for difference carries the same risks as investing in a future or an option and you should be aware of these as set out in paragraphs A respectively. Transactions in contracts for difference may also have a contingent liability and you should be aware of the implications of this.
Contracts for Difference. Contracts for Difference can be likened to futures which can be entered into in relation to Commodities or the FTSE-100 index or any other index or share, as well as Currency. However unlike other futures and options, these contracts can only be settled in cash. Investing in a CFD carries risks similar to investing in a future or an option and you should be aware of these. Transactions in CFDs may also involve a contingent liability and you should be aware of the implications of this as set out in clause 8 below.
Contracts for Difference. CFDs Expiration and Rollover Procedure Contracts for Difference (CFD) is an arrangement made in financial derivatives trading where the differences in the settlement between the open and closing trade process are cash-settled. There is no delivery of physical goods or securities with CFDs, whose value is linked to an underlying Futures asset with expiration date or maturity. Contracts for Difference can be linked to futures which can be entered into in relation to Commodities or the FTSE-100 index or any other index or share, as well as Currency. However, unlike other futures and options, these contracts can only be settled in cash. Investing in a CFD carries risks like investing in a future or an option and you should be aware of these. Transactions in CFDs may also involve a contingent liability and you should be aware of the implications of this as set out in clause 8 below. Futures are derivative financial contracts obligating the buyer to purchase an asset or the seller to sell an asset at a predetermined future date and set price. Futures—also called futures contracts—allow traders to lock in the price of the underlying asset or commodity. These contracts have expiration dates and set prices that are known upfront. In normal trading, when Futures Contract reaches its Expiration date, all contracts of the quoted underlying month will be closed, and all open positions will be liquidated as soon as the contracts reached its Maturity. To provide CFDs trading without interruptions and to avoid an obligation to close any position by the Customers, CMTrading introduces generic and continuous CFD’s of same underlying Futures but without closure, yet the Expiration will be handled automatically via the Trading Platform by adjusting the Customer’s account balance without interrupting any of the open positions. This adjustment known as CFD Rollover Charge:
Contracts for Difference. COMMODITIES AND OTHER REFERENCE ASSETS SUPPLEMENT Scope This Schedule supplements and amends the Customer Agreement as expressly provided below. Defined terms in the Customer Agreement shall be assigned the same meaning in this Schedule. In the event of any conflict or inconsistency between the Customer Agreement and this Schedule, the provisions in this Schedule shall prevail. You acknowledge and agree that, by executing the Customer Account Application, you agree to be bound by the terms of this Schedule.
Contracts for Difference. (CDs), Carbon Contracts for Difference (CCDs) and fixed premium contracts are ▌important elements to trigger emission reductions in industry by up-scaling new technologies, offering the opportunity to guarantee investors in innovative climate-friendly technologies a price that rewards CO2 emission reductions above those induced by the prevailing carbon price level in the EU ETS. The range of measures that the Innovation Fund can support should be extended to provide support to projects through price-competitive bidding, leading to the award of CDs, CCDs or fixed premium contracts. Competitive bidding would be an important mechanism for supporting the development of decarbonisation technologies and optimising the use of available resources. It would also offer certainty to investors in these technologies. In view of minimising any contingent liability for the Union budget, risk mitigation should be ensured in the design of CDs and CCDs and appropriate coverage by a budgetary commitment should be provided with full coverage at least for the first two rounds with appropriations resulting from the proceeds of auctioning of allowances allocated pursuant to Article 10a(8) of Directive 2003/87/EC. No such risks exist for fixed premium contracts, because the legal commitment will be covered by a matching budgetary commitment. In addition, the Commission should conduct, after concluding the first two rounds of CDs and CCDs, and each time it is necessary afterwards, a qualitative and quantitative assessment of the financial risks arising from their implementation. By a delegated act based on the results of that assessment, the Commission should be allowed to decide to use an appropriate provisioning rate rather than full coverage for further rounds of CDs or CCDs. Such an approach should take into account any elements that may reduce the financial risks for the Union budget, in addition to the allowances available in the Innovation Fund, such as possible sharing of liability with Member States, on a voluntary basis, or a possible re-insurance mechanism from the private sector. It is therefore necessary to allow for derogations from parts of Title X of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council23. The provisioning rate for the first two rounds of bidding should be 100 %. However, derogating from Article 210(1), 211(1), 211(2) and 218(1) of that Regulation, a minimum provisioning rate of 50 % as well as a maximum share of revenue ...
Contracts for Difference. (CFDs) and their risk classification WITHOUT PREJUDICE TO ANY OTHER PROVISION CONTAINED IN THIS AGREEMENT, YOU HEREBY REPRESENT AND WARRANT THAT YOU UNDERSTAND AND ACKNOWLEDGE THE FOLLOWING:
Contracts for Difference. CFDs, which are traded off-exchange (or Over-the-Counter (‘OTC’)), are agreements to exchange the difference in value of a particular instrument or currency between the time at which the agreement is entered into and the time at which it is closed. This allows the Clients to replicate the economic effect of trading in particular currencies or other instruments without requiring actual ownership of those assets. The definition of Contracts for Difference includes Spread Betting, as a form of CFDs. A full list of the CFDs on offer by us is available on our Website.
Contracts for Difference. (CFD) A CFD is an agreement to exchange the difference between the opening and closing value of a contract when closed. Rather than buying or selling the underlying instrument on which your contract is based, you simply place a trade on our trading Platform. The price of your CFD will then replicate the price of the underlying asset (without actually owning the underlying product) giving you a profit (or a loss) as the price of the underlying moves, so that the amount of any profit or loss made on a CFD will be equal to the difference between the price of the underlying instrument when the CFD is opened and the price of the underlying instrument when the CFD is closed, multiplied by the number of underlying instruments to which the CFD relates. CFDs are a way of trading on the upward or downward price movements of traditional financial markets without buying or selling the underlying asset directly. The potential losses associated with the price movements can exceed the total value of the initial margin (and any additional margin funds) you have deposited with us, and you may be obliged to close your positions at the worst possible time. CFDs are contracts can be entered into in relation to Commodities or the FTSE-100 index or any other index or share, as well as Currency. Investing in a CFD carries risks similar to investing in a future or an option and you should be aware of these. Transactions in CFDs may also involve a contingent liability and you should be aware of the implications of this as set out in paragraph (h) below.
Contracts for Difference. (CFD) can be likened to futures which can be entered into in relation to Currency. However unlike other futures and options, these contracts can only be settled in cash. Investing in a CFD carries risks similar to investing in a future or an option and you should be aware of these. Transactions in CFD may also have a contingent liability and you should be aware of the implications of this as set out in paragraph (c) below.
Contracts for Difference. Trading CFDs involves high risks, especially if the trading is based on margin financing; in this case, the client may be requested to strengthen their financial position by depositing cash, and if they are not able to do so, then they will be subject to a large loss. - If the client is not able to strengthen their financial position by depositing cash, this will lead to the closure of some open financial positions, the inability to open new financial positions and/or extending the open financial positions.
