contract for difference


CFD. A contract between two people that mirrors the situation of trading a security, without actually buying or selling the security. The two parties make a contract that the seller will pay the buyer the difference in price after a certain period of time if the designated security's price increases, and the buyer will in return pay the seller the difference in price if the security's price decreases. CFDs are traded in over the counter markets in many countries, although they are not allowed in the United States.

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You should try and make sure that you get a contract for difference in place so that you know both parties agree.

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The contract for difference was a contract between the two people, but neither of them really knew what it was all about.

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The contract for difference that Peter and Zel had made sure that all the details were worked out so there would be no dispute when the price increased.

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contract for deed/land contract contract for differences (CFD)