ContractA term of reference describing a unit of trading for a financial or commodity future. Also, the actual bilateral agreement between the buyer and seller of a transaction as defined by an exchange.
ContractA legal document between two parties confirming any sort of agreement such as terms of sale, employment or service.
Tending to cause aggregate output (GDP) and/or the price level to fall. Term is typically applied to monetary policy (a decrease in the money supply or an increase in interest rates) and to fiscal policy (a decrease in government spending or a tax increase), but may also apply to other macroeconomic shocks. Contrasts expansionary.
Contract for deedContract for deed
A contract in which the seller agrees to defer all or part of the purchase price for a specified period of time.
Contracts for differenceContracts for difference
CFDs are a derivative product designed for active traders who want to have extra leverage in their share trading.Instead of paying for purchases in full, they deposit a 'margin' with their broker (typically 20% of the total purchase value) and that margin requirement goes up and down in line with the rise and fall of their portfolio. In effect, the investor is able to speculate with much more money that he actually has by borrowing from his broker and using the shares he has bought as collateral. If his investments perform well, he can get rich quicker than if he was not trading on margin. If they perform badly, the broker will demand more margin payments which have to be paid in cash, and the investor may lose significant amounts.Contracts for differences, or margin trading, are risky, and not for novice investors. Most brokers do not offer a CFD service, and the market is dominated by a handful of brokers who specialise in this area. Margin requirements vary, and most brokers will ask for a deposit of £10,000 before allowing a new client to trade on margin.
Nexus (of contracts)Nexus (of contracts)
A set or collection of something.
Underlying futures contractUnderlying futures contract
A futures contract that supports an option on that future, which is executed if the option is exercised .
Further SuggestionsForeign currency forward contract
Futures contract multiple
Bank Investment Contract (BIC)
Commodity futures contract
Conditional Sales Contract
Long term forward contracts
Cost plus contract
Foreign currency futures contract
Interest rate futures contract
Turnkey construction contract
Forward forward contract
Options contract multiple
Forward foreign exchange contract
Guaranteed insurance contract