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

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- Post ID: 591734
- Modified: 2023-07-25T21:00:31+00:00
- Language: en

## Definition

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). Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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