That's not a CFD, it's a call option...
You are right,
this is an example of CFD.
It's the same thread.
Yes, thanks for pointing it out.
No idea what just happened. You give a supposed example of a CFD, I say it's not a CFD, then you give the same example again?
I believe that a call option if for the total amount, this agreement is only for the difference, so I do not need to provision the whole amount. Anyway, I'm not so familiar with the exact definition of each instrument, so feel free to call it whatever you wish.
![Wink](https://bitcointalk.org/Smileys/default/wink.gif)
What matters is not how you settle it, but how the profit responds to price changes of the underlying. With an option to buy 10K LTC at a strike price of $6, if LTC price is $7 when exercised the profit is $10K, just like in what you offered.
See also the graphs
here. You're taking a short call, the counterparty is taking a long call.
A
CFD is completely different and is equivalent to simply buying the commodity. The corresponding graph would be a straight line through the origin.
If you're offering call options and saying you're offering CFDs it's misleading.