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Trading CFDs involves significant risk of loss

GLOSSARY

A

Ask Price:

Also known as Offer Price, is the minimum price the market will accept for selling an instrument.

 

Asset:

Securities, currencies, commodities, derivatives, indices or any other trading/investment vehicle. 

 

At Best:

An instruction to a broker to buy or sell at the best available price. 

 

At or Better:

An instruction to a broker to fill an order at or above/below a specific price. 

 

Available Line:

The maximum amount of asset units available for trading. 

 

B

Balance:

The equity amount of an account excluding any open positions. 

 

Base Currency:

The first currency mentioned in a currency pair.

 

Bid Price:

The price a trader will have to pay for an instrument.

 

 

Bid/Ask Spread:

The difference between the Bid and Ask prices. 

 

Broker:

A person (or entity) that brings together the buyers and the sellers of an instrument.

 

Buy Limit:

A pending order to buy at a value below market price. If the ask price reaches the pre-specified level then a long position is opened.

 

Buy Stop:

A pending order to buy at a value above the market price. If the ask price reaches the pre-specified level, a long position is opened.

 

 

 

C

Candlestick Chart:

A candlestick chart graphically represents the price movement of a financial instrument. Each candlestick displays a specified time-period and the opening, closing, maximum and minimum price for that period. 

 

CFD:

Contract for Difference; a derivative contract between a buyer and a seller, where the seller will pay in cash the buyer the difference between an instrument’s present value and its value at a defined closing time. 

 

Charts:

A graphic representation of data that provides a trader information regarding previous price movements.

 

Closed Position:

An order that has been terminated and the cash settlement has been done. 

 

Commodity:

Basic goods usually used in the manufacturing of products or provision of services.

 

Contract Size:

A standardized measure of financial instruments, that varies depending on the asset class, traded on an exchange.

 

Counter Currency:

Also known as Secondary or Quote Currency. The second currency quoted in a currency pair.

 

 

 

 

D

Day Trade:

Buying or selling financial assets within a same day time frame.

 

Deposit:

Money transferred into an account to be used as equity for trading. 

 

Economic Indicator:

Macroeconomic data that shows the strength of an economy and its financial market.

 

Equity:

The amount of funds that a financial entity or person has available on his account when all current liabilities have been taken into account.

 

F

Fill:

The fill price is the execution price of an instrument’s order.

 

Foreign Exchange (Forex/FX):

The exchange of currencies that belong to different countries.

 

G

Gap:

The difference between the closing and the next day opening price for an instrument.

 

 

 

 

H

Hedge:

Is a technik to hedge is to protect one’s self against potential loss, or, more usually, to invest in order to offset potential loss (or gain) that results from a similar investment.

 

I

Instant Execution:

A transaction that is immediately executed with the quoted asset value shown on the platform.

 

Instrument:

Any asset that can be traded between two parties. Main instruments are equiteis, bonds, forex, commodities etc.

 

L

Leverage:

It allows traders to place an order whose value of which is higher than the amount of money available for trading. 

 

Limit Order:

A pending buying or selling order of an asset to be executed when it reaches a pre-specified price. 

 

Line Chart:

A line chart which shows the value of an asset over a selected time period. 

 

Long Position:

A position that a trader opens if he expects the asset’s price to rise.

 

Lot Size:

Standardized unit of measurement used to determine trade size.

 

M

Margin (Margin Requirement):

Margin is the minimum amount of money required by a trader in order to be able to open and/or maintain an open position through the use of leverage. 

 

Margin Call:

In the event that usable margin falls below pre-specified safety levels, the broker’s automatic system will begin to close positions.

 

Market Execution:

A Transaction that the order is filled at the best available price and if that is not available executed at its closest price available. 

 

Market Quote:

The current asking price for a securities contract on a securities market. 

 

N

 

 

O

Open Order:

An order to buy or sell an asset that is still in effect. 

 

Open P&L:

The current sum of a trader’s profits and losses on all his open positions. 

 

Open Position:

A transaction still in effect that has not been closed. 

 

P

Payout:

The financial benefit on an investment over a defined period.

 

Pending Order:

A type of order that executes a trading position only after when the asset reaches a predetermined price value.

 

Pip:

‘Percentage In Point’. The standard unit to measure a change in a currency’s value, usually in forex pairs is the number at the fourth decimal on the price.

 

Position:

An open trade or transaction in an asset.

 

Q

Quote:

Used to inform the trader of current bid and ask prices for a specific asset.

 

R

Rollover Charge:

The amount that a trader has to pay to keep one of his positions open overnight. For each position there is an application of a separate rollover charge.

 

S

Sell Limit:

A pending sell order that has a specified value above market price. 

 

 

Sell Stop:

A pending sell order that has a specified value below market price.

 

Short Position:

A position that a trader opens if he believes that the price of the underlying instrument is going to fall. 

 

Slippage:

In time of extreme volatility slippage is the difference between the price asked by the client and its execution price.

 

Spread:

The difference between the buy (bid) and sell (ask) prices.

 

Stop-Loss Order:

An order used to minimize losses at a pre-specified rate or amount.

 

T

Take-Profit Order:

An order used to close a position with a profit at a pre-specified rate or amount.

 

U

Used Margin:

Funds in a trader’s account that are used in order to maintain his open positions.

 

V

 

W

 

X

 

Y