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DiffShort version of Euro rate differential, which is a Chicago Mercantile Exchange Futures contract that is founded on the interest rate spread between the U.S. dollar and the British pound, the German mark, or the Japanese yen.Diff Similar MatchesProduct differentiationProduct differentiationSee differentiated product. Product DifferentiationProduct DifferentiationA source of competitive advantage that depends on producing some item that is regarded to have unique and valuable characteristics. DifferentiationDifferentiationA marketing strategy in which a company strives to distinguish itself from competitors by creating uniqueness within products or services or other aspects of their business. Scitovszky indifference curveScitovszky indifference curveAn indifference curve for a group of individuals representing the minimum needed to keep all of them at given levels of utility. A well-behaved family of such indifference curves is defined holding utilities of all but one individual constant and varying only the one. These are useful in discussing the gains from trade. Due to Scitovszky (1942). Contracts for differenceContracts for differenceCFDs 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. Further SuggestionsCommunity indifference curveIndifference curve Trade indifference curve Differential treatment Technological difference Forward differential Special and differential treatment Yield differential or pickup Differential swap Differential Difference check Tax differential view (of dividend policy) Social indifference curve Differentiated product |
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