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Trends & Analysis
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European stocks rise amid strong data from Germany

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Crude oil prices fall on US inventories data

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CAD rises after PM Trudeau announces resignation

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EUR/USD price may fall below parity in 2025

Trends & Analysis
News

European stocks rise amid strong data from Germany

News

Will Adidas kick-start growth in 2025?

News

Crude oil prices fall on US inventories data

News

CAD rises after PM Trudeau announces resignation

News

Could Netflix hit $1,000?

News

EUR/USD price may fall below parity in 2025

Contract definition

A contract is a legally binding agreement between two parties to buy or sell an underlying asset or financial instrument, such as a commodity, stock, or currency. Contracts are commonly used in derivatives trading, such as futures and options.

Each contract specifies the terms and conditions of the trade, such as the delivery date, the asset price and quantity, and other relevant details. They can be standardised or customised based on a trader’s preferences, and they can be traded on exchanges or over-the-counter (OTC) markets.

Common types of contracts in trading

Below are some of the most common types of contracts in trading and investing:

Futures contracts: A futures contract is an agreement to buy or sell a particular asset at a predetermined price on a predetermined date. It is bought and sold on an exchange and frequently used on commodities and indices.

Options contracts: An options contract is an agreement that gives the holder the right, but not the obligation, to buy or sell an underlying asset at a predetermined price on a predetermined date. It is frequently used to speculate on price movements and hedge against losses.

Forward contracts: A forward contract is a privately negotiated agreement between its buyer and seller to buy or sell a particular asset at a predetermined price on a predetermined date. It is commonly used in the forex market.

Contracts for Differences (CFDs): A Contract for Difference (CFD) is an agreement between its buyer and seller to exchange the difference between the opening and closing price of the contract. CFD traders can speculate on price movements of various financial instruments without owning them.

Start trading with ADSS

ADSS offers a range of global markets for traders, with opportunities in indices, commodities, forex, equities and more. We also feature tutorials, how-to guides, and weekly webinars to help you navigate the financial markets and find better trading opportunities. You can start trading and investing online by opening a live trading or demo trading account.

See all glossary trading terms


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Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.

ADS Securities LLC – S.P.C (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates under First Category: Dealing in Securities and Fifth category: Arrangement and advice (Introduction). ADSS is a Limited Liability Company – Sole Proprietorship Company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.

The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.

ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.