Trivia: Is it Contract for Difference or Contracts for Difference?

You would have thought that the financial institutions knew this. In fact, while we were doing a project for a Securities Company, we realised that there were many variations to this.

> Contract for Difference
> Contract for Differences
> Contracts for Difference
> Contracts for Differences

So what is CFD about?

A Contract for Difference (or CFD) is a contract between two parties, typically described as "buyer" and "seller", stipulating that the buyer will pay to the seller the difference between the current value of an asset and its value at contract time. (If the difference is negative, then the seller pays instead to the buyer.) In effect CFDs are financial derivatives that allow investors 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.

In actual fact, it is a single contact which hedges the risk. So it turns out that it is a contract for difference and it should be used in the plural.