The Library of Congress > Linked Data Service > LC Subject Headings (LCSH)

Contracts for difference


  • URI(s)

  • Instance Of

  • Scheme Membership(s)

  • Collection Membership(s)

  • Variants

    • CFDs (Contracts for difference)
    • Contracts for difference--Law and legislation
    • Contracts for differences
    • Difference, Contracts for
  • Broader Terms

  • Sources

    • found: Work cat: 2018431339: Campos Gavilán, Francisco. Protección de los consumidores que celebran contratos por diferencia (CFD), 2017:t.p. "contratos por diferencia (CFD)"; p. 3
    • found: Law, Jonathan. Oxford dictionary of finance and banking (6th edition). "Contract for differences (CFD)", viewed 2019-07-01:"A derivative contract in which one party (the issuer) agrees to pay another (the buyer) the difference between the current value of an underlying (e.g. an equity, bond, or index) and the value at the time the contract was made: if the difference is negative, the buyer pays the issuer. Settlement is on a daily basis for as long as the contract remains open. CFDs enable investors to speculate on the price movements of an asset without buying it: the buyer pays only a small principal to the issuer but receives the full benefits of owning the asset (including dividends on shares) and is likewise fully responsible for any losses. Exchange-traded CFDs went on sale for the first time in August 2007, on the Australian Stock Exchange." - https://www.oxfordreference.com/view/10.1093/acref/9780198789741.001.0001/acref-9780198789741-e-5349
    • found: Wikipedia, viewed 2019-07-01:"CFDs...are not permitted in a number of other countries -- most notably the United States, where, due to rules about over the counter products, CFDs cannot be traded by retail investors unless on a registered exchange and there are no exchanges in the US that offer CFDs." - https://en.wikipedia.org/wiki/Contract_for_difference
    • found: Australian Securities and Investments Commission. Thinking of trading contracts for difference (CFDs)?, 2012, viewed 2019-07-01:https://www.moneysmart.gov.au/media/173820/thinking-of-trading-in-contracts-for-difference-cfds.pdf ISBN 978-0-9805533-1-4t.p. (trading contracts for difference (CFDs); p. 6 ("A CFD is a leveraged 'derivative' financial product. CFDs are derivatives because their value is derived from the value of another asset (for example, a share, commodity or market index). When you trade CFDs, you take a position on the change in value of the underlying asset over time. You are essentially betting on whether the value of an underlying asset is going to rise or fall in the future compared to what it was when the contract was taken out (or executed)."; p. 7 ("Unlike investing in shares, when you trade CFDs, you are not buying or trading the underlying asset. What you are buying is a contract between yourself and the CFD provider. Because all you own is a contract with the CFD provider, you are also taking a bet that the CFD provider is in a sound financial position and will be able to meet their obligations to you.")
    • found: Investopedia, viewed Sept. 5, 2019(Contract for differences-CFD: A contract for differences (CFD) is an arrangement made in financial derivatives trading where the differences in the settlement between the open and closing trade prices are cash settled. There is no delivery of physical goods or securities with CFDs. Contracts for differences is an advanced trading strategy that is used by experienced traders and is not allowed in the United States)
    • notfound: Collins dictionary of law, 3rd edition, viewed online 2019-07-01 ; Diccionario jurídico-empresarial, 2000 ; Oxford dictionary of law, 9th edition, 2018, viewed online 2019-07-01 ; Merriam Webster unabridged dictionary, viewed online 2019-07-01.
  • Change Notes

    • 2019-07-01: new
    • 2019-10-04: revised
  • Alternate Formats

Suggest terminology


The LC Linked Data Service welcomes any suggestions you might have about terminology used for a given heading or concept.

Would you like to suggest a change to this heading?

Please provide your name, email, and your suggestion so that we can begin assessing any terminology changes.

Fields denoted with an asterisk (*) are required.