‘Contract for Difference’ investments explained to court in Anglo trial

Question & Answer

Q.What is a “Contract for Difference? A. A CFD is a form of investment known as a derivative which means an investor does not actually acquire a shareholding in a company. It is a form of spread-betting involving share prices.

University College Cork economics lecturer Séamus Coffey told the Anglo trial that the difference between shares and derivatives (like CFDs) was similar to the difference between having a share in the ownership on a horse and placing a bet on it.