Contracts for Difference Sample Clauses
A Contracts for Difference (CFD) clause establishes an agreement between two parties to exchange the difference in value of a specified asset between the time the contract is opened and when it is closed. In practice, this means that one party will pay the other the difference if the asset's value increases or decreases, without either party actually owning the underlying asset. This clause is commonly used in financial trading to allow parties to speculate on price movements or hedge existing positions. Its core function is to facilitate flexible trading and risk management by enabling profit or loss from asset price changes without the need for physical ownership or delivery.
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Contracts for Difference. Futures and Options contracts can also be referred to as contracts for difference. These can be options and/or futures on the FTSE 100 index or any other index or share, commodity or currency. However, unlike other futures and options, these contracts can only be settled in cash. Investing in contracts for difference carries the same risks as investing in a future or an option and you should be aware of these as set out in paragraphs A respectively. Transactions in contracts for difference may also have a contingent liability and you should be aware of the implications of this.
Contracts for Difference. Contracts for Difference can be likened to futures which can be entered into in relation to Commodities or the FTSE-100 index or any other index or share, as well as Currency. However unlike other futures and options, these contracts can only be settled in cash. Investing in a CFD carries risks similar to investing in a future or an option and you should be aware of these. Transactions in CFDs may also involve a contingent liability and you should be aware of the implications of this as set out in clause 8 below.
Contracts for Difference. Trading CFDs involves high risks, especially if the trading is based on margin financing; in this case, the client may be requested to strengthen their financial position by depositing cash, and if they are not able to do so, then they will be subject to a large loss. - If the client is not able to strengthen their financial position by depositing cash, this will lead to the closure of some open financial positions, the inability to open new financial positions and/or extending the open financial positions.
Contracts for Difference. COMMODITIES AND OTHER REFERENCE ASSETS SUPPLEMENT This Schedule supplements and amends the Customer Agreement as expressly provided below. Defined terms in the Customer Agreement shall be assigned the same meaning in this Schedule. In the event of any conflict or inconsistency between the Customer Agreement and this Schedule, the provisions in this Schedule shall prevail. You acknowledge and agree that, by executing the Customer Account Application, you agree to be bound by the terms of this Schedule.
Contracts for Difference. CFDs Expiration and Rollover Procedure
Contracts for Difference. (CFD)
2.6.2 All these products are types of leveraged derivatives that are used for speculative or hedging investment purposes. Transactions in these products may also have a contingent liability and you should be aware of the implications of this as set out in paragraph (d) below.
2.6.3 In addition to industry General Risk Disclosure Notice contained in this Agreement, you should be aware that margined currency trading is one of the riskiest forms of investment available in the financial Markets and is only suitable for sophisticated individuals and institutions. Given the possibility of losing an entire investment, speculation in the foreign exchange Market should only be conducted with risk capital funds that if lost will not significantly affect your personal or institution's financial wellbeing.
2.6.4 If you have pursued only conservative forms of investment in the past, you may wish to study currency trading further before continuing an investment of this nature.
2.6.5 If you wish to continue with your investment, you acknowledge that the funds you intend to invest is money you can afford to lose and the potential loss of all or more than your investment will not jeopardize your style of living nor will it detract from your future retirement program.
2.6.6 Additionally, you fully understand the nature and risks of trading spot Forex, currency options, CFDs or spread betting investments, and your obligations to others will not be neglected should you suffer financial losses.
Contracts for Difference. (CFD) can be likened to futures which can be entered into in relation to Currency. However unlike other futures and options, these contracts can only be settled in cash. Investing in a CFD carries risks similar to investing in a future or an option and you should be aware of these. Transactions in CFD may also have a contingent liability and you should be aware of the implications of this as set out in paragraph (c) below.
Contracts for Difference. CFDs, which are traded off-exchange (or Over-the-Counter (‘OTC’)), are agreements to exchange the difference in value of a particular instrument or currency between the time at which the agreement is entered into and the time at which it is closed. This allows the Clients to replicate the economic effect of trading in particular currencies or other instruments without requiring actual ownership of those assets. The definition of Contracts for Difference includes Spread Betting, as a form of CFDs. A full list of the CFDs on offer by us is available on our Website.
Contracts for Difference. 7.1. By transacting in CFDs, you are subject to a higher level of risks than the risks associated with transactions in traditional shares. You may not get back the amount initially invested and may be required to make additional payments by way of margin payments on a frequent basis. Investors in CFDs may be subject to unlimited losses.
7.2. You should not deal in CFDs unless you understand their nature and the extent of your exposure to risk. You should also be satisfied that the product is suitable for you in the light of your circumstances and financial position. Although CFDs can be utilized for the management of investment risk, it may not be suitable for some investors
Contracts for Difference. (CFDs) and their risk classification
4.1. CFDs are complex Financial Instruments which carry a high level of risk and are not appropriate for investors who do not possess the appropriate level of knowledge and experience to deal in them. You acknowledge and agree that you have read and understood our Risk Disclosure.
4.2. CFDs are OTC derivatives and are bilateral contracts entered into between two counterparties. When you enter into any Order to buy or sell a CFD on our Electronic Trading Platform, you trade solely with us as your intermediary and the Liquidity Provider as your counterparty. The Liquidity Provider is the principal to each trade that you may enter with us (acting as your intermediary).
4.3. When you trade in an OTC derivative contract such as an CFD trade, the value and payment obligations in relation to these are determined with reference to the price movement of an underlying Financial Instrument or reference point. As such, when entering into a buy or sell Order for a CFD you speculate on a movement of the price of the underlying Financial Instrument. The risk of loss is exacerbated in the case in which Leverage is used for our trading CFDs. The effects of trading with Leverage are as set out in Clause 6 and in our Leverage Policy.