A contract between a seller and a buyer who are effectively
betting on the short-term movements in the price of shares or other traded investments. The
gain or loss is the difference between the price of the asset when the contract was made and the
price in the future when the contract is closed out. If the price
increases, the seller pays the buyer. If the share price decreases,
the buyer pays the seller. Contracts are usually made with borrowed
money (leveraged) which can magnify gains or losses.
Last updated: 10 May 2018