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Glite Dictionary
🌊 Fluid flow modeling 💹 A trading contract
CFD

CFD

1 9.9
A contract that pays the difference between opening and closing prices of a stock or oil without owning it
  • noun
  • UK
: CFD
  • The CFD market covers long-term forward contracts, with durations stretching from six months up to fifteen years and beyond, while the EFA market is for much shorter-term contracts, usually one week to six months in duration.

I launched the Internet service and I added to it a generic financial product to CFD.

Examples

  • A CFD contract is basically a forward agreement on a stock, an index, a commodity, or anything else for that matter (see attached overview).

    Blog text (14)

  • CFDs or spread betting enable you to trade on margins to maximize your trading capital.

    Blog text (6)

  • But the larger, more sophisticated players, including institutional funds, will simply move to the CFD market.

    Blog text (14)

  • CFD contracts are usually for large quantities of power, perhaps covering the output of one or more large power plants, and are highly tailored and specific to the individual generator and consumer involved.

    Academic text (2000)

  • Many investors have been escaping the tax using so-called contracts for difference, or CFDs, offered by prime brokers that let them bet on a stock's gain or loss without owning the shares.

    Blog text (14)

  • Many investors use CFD contracts to speculate on price movements without owning actual assets.

  • Traders can leverage their capital by using CFDs to gain exposure to various markets without the need for physical ownership.

  • Investors appreciate the flexibility of CFDs as they can profit from both rising and falling markets.

Synonyms

derivative
vsCFD
  • Specialized
54 9.5

A financial product whose value changes with another asset, like a stock

specifies a contract that pays the difference between opening and closing prices without ownership
OTC derivative
vsCFD
  • Specialized
1 9.9

A financial contract privately negotiated and traded between two parties, not on an exchange

focuses on paying the price difference rather than on where the contract is traded

Surface Forms

CFD singular
CFDs plural

Morphology

CFD = C + F + D

CFD is an initialism whose letters name an expansion (contract for difference) rather than productive English morphemes, so the form provides no transparent clue to meaning for learners.

Etymology

CFD stands for contract for difference, a name that says it all: a 'contract' that pays the 'difference' between opening and closing prices, so you can take part in price changes without owning the asset.