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Take or pay contract |
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Take or pay contractAn agreement that obligates the purchaser to take any product that is offered (and pay the cash purchase price) or pay a specified amount if the product is not taken.Take or pay contract Similar MatchesContractionContractionEconomic contraction 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. Retirement annuity contract (RAC)Retirement annuity contract (RAC)Prior to 30th June1988, people not in pensionable employment (employment where no pension scheme exists) or people who were self employed were able to qualify for tax relief for contributions made to a pension scheme known as a retirement annuity under sections 226 of the Income and Corporation Taxes Act 1970. Although RACs were replaced by personal pension plans from 1st July 1988 those already in force may continue to operate. Unilateral ContractUnilateral ContractA contract under which one party expressly makes a promise, the other party, although making no reciprocal promise, may be obligated by law or may have already given consideration. Contract monthContract monthThe specified month to which a futures or options contract refers. This is the month when the specified instrument is delivered in exchange for cash settlement. Further SuggestionsInterest rate futures contractFutures contract Nondeliverable Forward Contracts (NDF) Options contract multiple Contracted out money purchase scheme Cost plus contract Forward contract Contractual Intermediary Contract contract note contracting out Sales Contract Contractionary Management contract Optimal contract Contractual lien Installment Contract contract size Contract for deed Currency futures contract Bullet contract Bank Investment Contract (BIC) Contract curve Periodic purchase deferred contract Contractual liability |
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