Compounding for Differences Law and Legal Definition
Compounding for differences is a form of gambling in stocks, securities, and commodities. It is settling a contract without executing its complete terms. In such a gambling, a fictitious sale is made for delivery at a future time with no intention to deliver and settlement is made with no difference between the contract price and the market price. For example, A buys 100 shares of stock at 100 from B, the stock to be delivered in 30 days. At the end of 30 days the price of the stock is 98 and A pays B $100 instead of taking the stock.
Legal Definition list
- Compounding a Felony
- Compounding
- Compounder [Food and Drugs]
- Compounded Positron Emission Tomography Drug
- Compound Sum of Annuity
- Compounding for Differences
- Comprehensive
- Comprehensive Alcohol Abuse and Alcoholism Prevention, Treatment, and Rehabilitation Act
- Comprehensive and Coordinated System
- Comprehensive Anti Apartheid Act
- Comprehensive Assessment of Patients
Related Legal Terms
- 1040 Form
- A Fortiori
- A Fortiori Argument
- Absent Uniformed Services Voter
- Academy for International Conflict Management and Peacebuilding [USIP]
- Acceptance for Value
- Access to Classified Information (Military)
- Accessory Before The Fact
- Accompanying the Armed Forces outside the United States
- Accounting for Fruits
