Contracts for Difference
/ˈkɒntrækts fɔːr ˈdɪfrəns/
Definitions
- (n. pl.) Financial derivative contracts that allow parties to speculate on the price movement of an asset without owning it.
Contracts for difference enable investors to profit from price changes without trading the underlying asset.
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Commentary
Used primarily in financial and commercial law, contracts for difference are instruments that simplify trading by focusing on price differentials rather than asset ownership.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.