Difference transaction (margin trading, contracts for difference, CFDs)

Auch in: DE FR

Forward exchange transaction not aimed at the acquisition of securities or goods, but merely at a possible profit from the price difference; see the definition in Section 764 of the German Civil Code. – Corresponding transactions therefore precisely map the movement between the bid price and the ask price and offer the advantage that indices, commodities, shares or bonds are traded “on margin” with a fraction of capital. The investor can either bet on rising prices (go long) or speculate on falling prices (go short). In principle, the maturities of the respective positions are unlimited; however, brokers usually require a margin call after a certain loss. – Older literature refers to an economic entity trading in the market in this way as a “stock jobber” or, using the French term for such a person, as a “setter,” sometimes also as an “agioteur.” – See agiotage, stockbroker, broker, commercials, day trading, foreign exchange trading, computerized, jobber, setter, short sale, margin call, option, option, naked, position, uncovered, commodity futures contract, speculation, spread bets, futures speculator. – Cf. 2006 Annual Report of BaFin, p. 164 f. (uncovered transactions).

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
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Merk, G. (Hrsg.): „Difference transaction (margin trading, contracts for difference, CFDs)“. In: Finanz- und Wirtschaftslexikon. https://www.gerhardmerk.de/difference-transaction-margin-trading-contracts-for-difference-cfds/ (Stand: 25.07.2023).

Die von Universitätsprofessor Dr. Gerhard Merk begründete Sammlung wird seit Herbst 2014 von Professor Dr. Dr. h.c. Eckehard Krah redaktionell fortgeführt und um neue Begriffe ergänzt. Sollten Sie Fehler entdecken oder sonstige Hinweise haben, schreiben Sie an: info@ekrah.com

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