Common Contracts
1 similar Contract for Difference contracts
Contract for DifferenceContract for Difference • November 22nd, 2022
A Contract for Difference (CFD) is an agreement between two parties to exchange the performance of an instrument (share, index, currency or commodity). Typically, the buyer of the CFD would receive the difference in value of the instrument if it moves up from the seller. Similarly the seller would receive the difference in the value of the instrument if the instrument moves down. A CFD is a Financial Derivative. A CFD contract size is standardised; for local CFD’s, one contract is the equivalent to one share.
