Contract for Differences (CFD)
A contract for differences is a leveraged derivative that settles price changes in an underlying asset without physical ownership.
Equity-linked notes, equity derivatives, CFDs, derivative securities, and weather derivatives used in structured exposure.
Equity-Linked and Contract Derivatives is the financial-instruments landing page for underlying assets, derivative securities, equity-linked notes, CFDs, notional value, risk bearing, hedging strategies, hedge ratios, and long hedges. It keeps related terms in one branch so readers can move from a broad instrument question to the article that owns the contract evidence.
Use this page when a derivative exposure or hedge term changes the risk being transferred, measured, or offset. Use the parent Derivative Risk, Hedging, and Underlyings page when you need the broader instrument map. For an individual decision, confirm the contract, term sheet, prospectus, confirmation, exchange specification, or disclosure record before relying on the term.
Use the table below to move from this landing page into the term page that best matches the instrument evidence.
| Term | Use it for |
|---|---|
| Contract for Differences (CFD) | Contract for Differences (CFD) helps identify the exposure, hedge relationship, notional amount, or underlying reference behind a derivative. |
| Derivative Securities | Derivative Securities is a derivative risk or hedging term used to place the narrower article in the right contract, payoff, settlement, and risk context. |
| Equity Derivative | Equity Derivative helps classify a claim as debt, equity, hybrid, or financial-asset exposure. |
| Equity-Linked Note (ELN) | Equity-Linked Note (ELN) helps identify the exposure, hedge relationship, notional amount, or underlying reference behind a derivative. |
| Equity-Linked Security (ELKS) | Equity-Linked Security (ELKS) helps identify the exposure, hedge relationship, notional amount, or underlying reference behind a derivative. |
| Weather Derivative | Weather Derivative is a derivative risk or hedging term used to place the narrower article in the right contract, payoff, settlement, and risk context. |
A hedge ratio can show how many futures contracts are needed to offset part of a price exposure, but the hedge may still leave basis risk.
Equity Derivatives content is educational and does not provide personalized investment, tax, legal, accounting, valuation, derivatives, or securities advice.
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A contract for differences is a leveraged derivative that settles price changes in an underlying asset without physical ownership.
Derivative securities are tradable instruments whose value is derived from an underlying asset, index, rate, commodity, or credit exposure.
An equity derivative is a contract whose payoff depends on a stock, equity index, basket, or other equity-linked exposure.
An equity-linked note combines debt-like principal terms with a payoff tied to a stock, index, basket, or equity option strategy.
An equity-linked security gives investors debt or preferred-like exposure with returns tied to an underlying equity security or index.
A weather derivative pays based on weather measures such as temperature, rainfall, or snowfall rather than traditional financial asset prices.