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Quantitative Finance · Glossary

What is Contract for difference?

Definition 17.4 Markets I: The Ecosystem and Exchange-Traded Markets · Chapter 17 — Delta-One Instruments

A contract for difference (CFD) is an open-ended equity swap offered by a broker to its clients, usually retail, on margin: the client receives the change in price, is credited or debited dividends, and pays daily financing on the full notional for as long as the position is open.

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