In finance, a contract for difference (CFD) is a contract between two parties, typically described as "buyer" and "seller", stipulating that the seller will pay to the buyer the difference between the current value of an asset and its value at contract time (if the difference is negative, then the buyer pays instead to the seller).In effect CFDs are financial derivatives that allow traders to take advantage of prices moving up (long positions) or prices moving down (short positions) on underlying financial instruments and are often used to speculate on those markets.An option is a security, just like a stock or bond, and constitutes a binding contract with strictly defined terms and properties. Stocks Similarities: Listed Options are securities, just like stocks.Options trade like stocks, with buyers making bids and sellers making offers.
The underlined above are some of the more obvious reasons to exit the riskier asset markets of shares and property - in my opinion.
Meanwhile, Houston-based Conoco had its best day in four months, rising as much as 9.7 percent to .41 in New York.
The sale comes two weeks after Canadian Natural Resources Ltd.
Cenovus (TSX: CVE) is paying Conoco .1 billion in cash and 208 million shares for its 50 percent stake in their Foster Creek and Christina Lake oilsands venture, plus most of its conventional assets in the Deep Basin of Alberta and British Columbia. While the acquisition will double the Calgary-based producer’s reserves and production, it ties it heavily to one of the costliest methods of producing oil after prices sank below a barrel just last year.
The deal is the latest sale of energy assets in Canada by international companies gravitating toward higher-profit drilling in U. The deal also weakens its balance sheet, with Cenovus funding the cash portion of the deal by tapping its credit line, taking on a .5 billion bridge loan and selling billion of shares at a discount to recent prices.