Futures were once called contracts for difference (CFD) because of the way they are structured, margined and marked to market. Essentially, CFDs are agreements between two parties to exchange in principal value the difference between the opening and closing prices of the contract, multiplied by the number of shares listed in the contract.
CFDs are ‘over-the-counter' equity derivatives, allowing the holder to participate in single stocks replicating the underlying share on the cash market. CF
The week on Risk.net, December 2–8, 2017Receive this by email