Contract for difference
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Contracts for difference (CFDs), are equity derivatives that give a trader the ability to trade a wide range of financial instruments, including stocks, indices, commodities and currencies across international markets. The parties to a CFD agree to an exchange of a difference between the opening and closing price of a financial instrument.[1] The CFD lets the trader take a view on price performance without granting ownership of the underlying asset.
CFDs are currently available in listed and over-the-counter markets in various countries, including United Kingdom, New Zealand, Germany, Switzerland, Italy, Singapore, South Africa, Australia and Hong Kong. CFDs are referred to by a variety of names, depending on where they are issued. They are sometimes called Turbo Certificates or Waves. In Hong Kong, they are referred as Callable Bull/Bear Contracts.[2]
References
- ↑ CFDs. forex-cfds.com.
- ↑ Contract for Difference. Reuters Financial Glossary.
