Contracts for Difference

GPTKB entity

Statements (50)
Predicate Object
gptkbp:instanceOf gptkb:financial_services_company
gptkbp:abbreviation gptkb:CFD
gptkbp:assetClass stocks
commodities
currencies
indices
gptkbp:fareControl gptkb:organization
gptkb:parliamentary_committee
overnight financing
gptkbp:feature margin trading
leverage
retail and professional clients
can be closed at any time
no fixed expiry date
no ownership of underlying asset
no stamp duty in UK
not deliverable
not suitable for all investors
profit/loss based on price difference
settled in cash
short selling possible
subject to ESMA restrictions in EU
subject to gapping
subject to leverage limits in EU
subject to margin calls
subject to regulatory warnings
subject to risk warnings in advertising
subject to slippage
subject to stop-out
taxable as capital gains in some countries
subject to negative balance protection (in some jurisdictions)
https://www.w3.org/2000/01/rdf-schema#label Contracts for Difference
gptkbp:notTradedOn regulated exchange
gptkbp:originatedIn gptkb:United_Kingdom
1990s
gptkbp:prohibits gptkb:Belgium
gptkb:Hong_Kong
gptkb:United_States
gptkbp:provides brokerage firms
gptkbp:purpose speculation
hedging
gptkbp:regulates gptkb:Financial_Conduct_Authority_(UK)
varies by country
gptkbp:riskFactor counterparty risk
high risk of loss
subject to leverage risk
gptkbp:tradedOn over-the-counter
gptkbp:usedIn financial markets
gptkbp:bfsParent gptkb:Low_Carbon_Contracts_Company
gptkbp:bfsLayer 6