Bear Market − A market distinguished by falling prices.
Bid − The price level at which an asset is sold.
Bull Market − A market dominated by rising prices.
CAC − The top 40 companies listed in the Paris Stock Exchange weighted by market capitalization.
Commission − The fee charged for buying or selling securities.
Contract Size − The notional amount of shares/indices/commodities/currency controlled by a CFD or options position.
DAX − An index of the top 30 companies listed in the Frankfurt Stock Exchange weighted by market capitalization.
Dividend − The element of a company’s earnings which is distributed to shareholders either bi-annually or annually. For stock, CFDs dividends are a cash modification to the account. Long position holders are credited, whereas short position holders are debited the dividend.
Dow Jones Industrial Average − An index of the 30 largest blue-chip companies listed in the United States which are price weighted.
Expiration/Expiry − A fixed duration such as option or forward contracts which expire at a predetermined date and time in the future.
FTSE 100 − An index of the top 100 companies listed in the London Stock Exchange weighted by market capitalization.
Hedge − A position that is created to specifically reduce or eliminate risk due to an unfavorable movement in price.
Interest − Charges on loans and financial instruments that reflect their risk profile.
Leverage − Leverage is the ratio of the size of the position to the amount of the deposit. It permits traders to obtain a big exposure with a moderately small outlay.
Margin − The amount required from a client to cover losses when a price moves adversely.
Market capitalization − A company’s market value calculated by the current share price times the number of issued shares.
NASDAQ − The second largest stock exchange in the United States which traditionally lists many technology companies.
Nikkei 225 − An index of the top 225 shares listed in the Tokyo Stock Exchange weighted by price.
Offer − The price level at which you can buy a financial asset.
Realized Profit/Loss − The amount of money you have made or lost on a position once it has been closed.
Sector − A selection of company stocks within a particular industry group. More often than not an index is available to track industry groups.
Settlement − Closing a position at a predetermined market price once the market is closed.
S&P 500 − An index of the top 500 companies listed in the New York Stock Exchange (NYSE) weighted by market capitalization.
Spread − The difference between the buying and selling price of a financial instrument.
Stock Exchange − A market on which securities are traded.
Stock Index − A collection of several stocks expressed as a total price and measured against a value which has a base on a specified date in the past.
Underlying − The actual traded market or markets from which the price of a futures or option is derived.
Volatility − A measure in the change of price movements of a market over a period of time.