In a financial services context, a contract for difference creates a contract between two parties speculating on the movement of an asset price, such as a share. The CFD consists of an agreement (contract) to exchange the difference in value of a particular currency, commodity, share or index between the time at which a contract is opened and the time at which it is settled. The contract payout will amount to the difference in the price of the asset between the time the contract is opened and the time it is settled. If the asset rises in price, the buyer receives cash from the seller, and vice versa. CFDs are open-ended contracts with no fixed settlement date and can be closed out by the buyer on demand.