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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  • CFD — On Wikipedia, CfD may refer to Wikipedia:Categories for discussion. CFD may refer to: Science and computing Computational fluid dynamics, a branch of fluid dynamics Counterfactual definiteness, the ability, quantum mechanics, to consider results… …   Wikipedia

  • CFD — Die Abkürzung CFD steht für: Computational Fluid Dynamics, siehe Numerische Strömungsmechanik Contract For Difference, eine Art von Finanzinstrumenten, siehe Differenzkontrakt eine Komponente zur elektronischen Signalverarbeitung, siehe Constant… …   Deutsch Wikipedia

  • CFD — Cette page d’homonymie répertorie les différents sujets et articles partageant un même nom.   Sigles d’une seule lettre   Sigles de deux lettres > Sigles de trois lettres   Sigles de quatre lettres …   Wikipédia en Français

  • CFD — See contracts for differences * * * CFD UK US noun [C] ► STOCK MARKET ABBREVIATION for Contract for Difference: a way of trading in shares without owning the shares: »CFDs are equivalent to shares and follow the movements of the top 350 stocks in …   Financial and business terms

  • CFD — …   Википедия

  • cfd — cubic feet per day. * * * …   Universalium

  • CFD — Computational Fluid Dynamics (Governmental » Military) Computational Fluid Dynamics (Academic & Science » Electronics) * Contracts for Difference (Business) * Contracts For Difference (Academic & Science » Chemistry) * Contract For Difference… …   Abbreviations dictionary

  • CFD — cephalofacial deformity; color flow Doppler; computational fluid dynamics; craniofacial dysostosis …   Medical dictionary

  • CfD — Call for Discussion …   Acronyms

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