Contracts for Difference (CFD)

An agreement between a vendor and a purchaser who is adequately wagering on the transient developments in the cost of offers or other exchanged ventures. The pickup or misfortune is the contrast between the cost of the advantage when the agreement was made and the cost later on when the agreement is finished off. In the event that the cost builds, the vendor pays the purchaser. In the event that the offer value diminishes, the purchaser pays the merchant. Contracts are typically profited (utilized) which can amplify increases or misfortunes.

« Back to Glossary Index

Leave a Reply

Your email address will not be published.