Cfd Products I Am Really In Need To Know The Following: 1. Difference Between CFD Or OTC Products And On Exchange Products.

I am really in need to know the following: 1. difference between CFD or OTC products and on exchange products. - cfd products

CFDs are contracts for differences, equity swaps, which are essentially standardized OTC.

CFD: not listed; asset agreement between a client and a broker, a bank changes the reference rate or index is usually resolved by the day, the risk of bankruptcy on credit subjects or between the distributor and the customer, dividends people back from long can flexibly be paid in relation to the underlying assets of a large number of CFD underyings unavailable capture exchange-traded products, the need for legal documents (asdd who handle CSA) trade payments directly with his counterpart

OTC Equity Swaps: similar to the CFD, but less standardized and more flexible, for example, you may agree to monthly statements, quarterly, etc. You agree that the floating leg based on a 1-month LIBOR, 3 pay pay-LIBOR, etc. These swaps dealers a broad spectrum of reference plants tender of which is offered to the CFD, which may be at higher risk of credit as payment for the total return may be less frequent

Change products: Here I am thinking above all that is in the future, his colleague is a clearSociety and not as a dealer, less risk of counterparty credit, more standardized implementation of the rule, fast, inexpensive, but less flexible in terms of the underlying assets, the margin under Regulation

Hope this helps!