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

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  • 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 — 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 — Contrat de différence Le CFD signifiant «  contract for difference  » ou « contrat pour la différence » est un type de produits dérivés bénéficiant d’un fort effet de levier récemment apparu en France (2007). Son développement …   Wikipédia en Français

  • contract for difference — abbr CFD A term used in the Financial Services Act 1986 to describe cash settled (See cash settlement) instruments, e.g. FTSE 100 futures, FRAs, swaps and spread betting. Dresdner Kleinwort Wasserstein financial glossary * * *    The exchange of… …   Financial and business terms

  • Contract for Differences — 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

  • 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

  • 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… …   Law dictionary

  • Contract bridge — Bridge declarer play Alternative name(s) Bridge Type trick taking Players 4 Skill(s) require …   Wikipedia

  • contract — con·tract 1 / kän ˌtrakt/ n [Latin contractus from contrahere to draw together, enter into (a relationship or agreement), from com with, together + trahere to draw] 1: an agreement between two or more parties that creates in each party a duty to… …   Law dictionary

  • CONTRACT — (Heb. חוֹזֶה, ḥozeh), in general law theory a legally binding agreement between two or more parties, in terms of which one party undertakes for the benefit of the other to perform or refrain from a certain act. As such, contract is the main… …   Encyclopedia of Judaism

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