Contracts for Difference: Money
iMinds
Jan 2009 · iMinds Pty Ltd
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Learn about Contracts for Difference with iMinds Money's insightful fast knowledge series. Contracts for difference, or simply CFDs, are a type of derivative whereby two parties agree to exchange the difference between the current value of an underlying asset and its value upon expiry. The underlying assets can be very diverse, from equity to commodities, but share prices, exchange traded funds or market indices are most commonly used. The most notable distinction of a CFD is that no assets are physically traded - instead, the contract merely stipulates that the difference in price between ope.
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