contracts for difference

contracts for difference
contracts for difference (CFDs)
An agreement between two parties to exchange the difference between the opening price and the closing price of the contract, at the close of the contract, multiplied by the number of shares specified within the contract. A CFD is a margin traded product, which allows investors to receive the benefits of ownership of an equity without having to own the physical equity, in the underlying company.
For UK corporation tax purposes, a contract for differences is a contract, the purpose or "pretended purpose" (that is, the aim that the parties are seeking to achieve) of which is to make a profit or avoid a loss by reference to fluctuations in the value or price of property described in the contract, or an index or other factor designated in the contract.
Related links

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Игры ⚽ Нужно решить контрольную?

Look at other dictionaries:

  • Contracts for Difference — Ein Differenzkontrakt, auch Contract for Difference (CFD), stellt die laufzeitunabhängige Vereinbarung über einen Barausgleich aus der Differenz zwischen dem Kauf und Verkaufspreis eines Finanzinstruments dar und reflektiert damit die genaue… …   Deutsch Wikipedia

  • Contract for difference — In finance, a contract for difference (or CFD) is a contract between two parties, typically described as buyer and seller , stipulating that the buyer will pay to the seller the difference between the current value of an asset and its value at… …   Wikipedia

  • contract for difference — contracts for difference (CFDs) An agreement between two parties to exchange the difference between the opening price and the closing price of the contract, at the close of the contract, multiplied by the number of shares specified within the… …   Law dictionary

  • Contracts for differences — (CFD)   A type of bilateral contract where the electric generation seller is paid a fixed amount over time which is a combination of the short term market price and an adjustment with the purchaser for the difference. For example, a generator may …   Energy terms

  • Oil-for-Food Programme — The Oil for Food Programme (OFF), established by the United Nations in 1995 (under UN Security Council Resolution 986)[1] was established with the stated intent to allow Iraq to sell oil on the world market in exchange for food, medicine, and… …   Wikipedia

  • J. League contracts — Contracts in Japan s professional soccer league (J. League) are subject to certain rules and regulations. Mainly, there are three types of contracts, as described below:ContractsProfessional A; Base Salary: ¥4.8 million and up(Note: For the first …   Wikipedia

  • Major League Baseball television contracts — The following is a detailed description of the various television networks (both broadcast and cable), rights fees, and announcers who have called Major League Baseball games throughout the years (from the late 1930s through the present).… …   Wikipedia

  • Buy term and invest the difference — Buying term and investing the difference is a concept involving term life insurance and investment strategies that allow individuals to eventually Self Insure and provides an alternative to permanent life insurance. Generally speaking term… …   Wikipedia

  • Council for Dance Education and Training — Abbreviation CDET Formation 1979 Legal status …   Wikipedia

  • German Institute for Economic Research — Deutsches Institut für Wirtschaftsforschung (DIW) Established 1925 Executive Board Gert G. Wagner, Georg Weizsäcker, Cornelius Richter Faculty Economics, Social Science Staff 185 Location Berlin …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”