A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
American Depository Receipt
Securities trading after regular trading hours on organized exchanges
Amsterdam Stock Exchange
Employee of a brokerage, bank or fund manager who studies companies and makes buy-and-sell recommendations
The simultaneous buying and selling of a security at two different prices in two different markets, resulting in profits without risk
The quoted offer at which someone can buy; also called the offer price
Athens Stock Exchange
At a price equal to the face value of a security
Many auctions occur in the financial markets; however the most common is the post market auction on the FTSE 100. This occurs from 1630 to 1635 and then the official settlement is declared
Authorising someone to spread bet on your behalf. For this Finspreads would require your written notification and we would perform an identity check. Same as Power of Attorney
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Any realised profits or losses, adjustments, fees or charges – that are denominated in a currency not of your Base Currency – will be automatically converted back to your Base Currency
This occurs when the bid price exceeds the offer price for a stock. This is a market distortion usually when stock is suspended or under a share repurchase scheme
A technical analysis tool. A chart pattern depicting the period when the supply and demand of a certain stock are in relative equilibrium, resulting in a narrow trading range. The merging of the support level and resistance level
The rate at which the Bank of England lends to the retail Banks
Basis point is a way of expressing variations in bond yields. One basis point is 0.01 percentage point. Basis points also are used for interest rates
Someone who believes that prices in the stock market are going to decline. Opposite of a bull
The measure of an asset's risk in relation to the market
Same as tick size. The minimum point movement in each market, for example the FTSE has moved 10 ticks this equates to a 10 index point move in the FTSE
The quoted price at which someone can sell
The difference between what buyers are willing to pay and what sellers are asking for in terms of price
The original Black Friday occurred on September 24, 1869, when prospectors attempted to corner the gold market
Refers to October 19, 1987, when the Dow Jones Industrial Average fell 508 points on the heels of sharp drops the previous week. On Monday, October 27, 1997, the Dow dropped 554 points. While the point drop set a new record, the percentage decline was substantially less than in 1987
A model for pricing call options based on arbitrage arguments. Uses the stock price, the exercise price, the risk-free interest rate, the time to expiration, and the expected standard deviation of the stock return
Company renowned for the quality and wide acceptance of its products or services, and for its ability to make money and pay dividends
Plus or minus two standard deviations where the standard deviations are calculated historically in a moving window estimation. Hence, the bands will widen if the most recent data is more volatile. If the prices break out of the band, this is considered a significant move
Bonds are debt and are issued for a certain period of time. The price of various bonds can be traded with Finspreads
Brussels Stock Exchange
Someone who believes that prices in the stock market are going to rise. Opposite of a bear
Same as taking a long position
An instruction to buy at a different price to where the market is currently trading
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Exchange rate between British pound sterling and the U.S. dollar
A stock index of 40 of the 100 largest companies listed on the forward segment of the official list of the Paris Bourse
An option that gives the holder the right to buy the underlying asset. Opposite of a put. Option prices can be traded with Finspreads
Under current UK legislation, all profits made via financial spread betting are free of CGT
Chicago Board of Trade
Trades that are sent through to a Clearing House, which acts as a central counterparty, which assumes the counterparty risk to trades which are registered with it and by doing so underpins many important financial markets
Contract For Difference. A leverage share trading product. Go to Cityindex.co.uk for further information about cfd
Person who analyses markets with the use of charts
A clearing house is an organisation that assumes the counterparty risk to trades which are registered with it and by doing so underpins many important financial markets
The price at which a product was traded to close the open position. Also refers to the price of the last transaction in a days trading session
Chicago Mercantile Exchange
Commodity Exchange (part of NYMEX)
A commodity is food, metal, or another fixed physical substance that traders buy or sell, usually via futures contracts. Commodity prices can be traded with Finspreads
Department in all organized stock exchanges to ensure that all companies, traders and brokerage firms comply with the Financial Services Authority
Instructions you give us to attach a stop loss and/or limit order to your opening order if it is triggered and filled
The confirmation of your trade describing the market, the unit of trading, the action (buy or sell), the price and the expiry date
The interest intrinsic in our share futures prices, excluding any dividends payable during the contract period
Consumer Price Index, used as a measure of inflation
Credit can be allocated to your account providing evidence of funds are submitted to support such an application
Foreign exchange rate between two currencies other than the US dollar. Finspreads offers spread betting on foreign exchange
A financial future contract for the delivery of a specified foreign currency
The Financial Services Authority custody rules require Finspreads to place all client funds into a Custodian Bank
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A Daily Funded Trade (DFT) is typically a short term spread bet with some of the tightest spreads on offer. Daily Financing and dividends are not included in the calculation of Our Price but appear as separate charges or credits to your account. Each DFT has a long term settlement date. As with all spread bets, profits and losses are crystallised only when you close or partially close the trade.
Opening and closing of a position in the same contract in one day
Call the dealing desk in order to trade
To remove a stock's listing on an exchange
The sale of a futures contract may require the seller to deliver the commodity during the delivery month, if the short position is not offset prior to that time
Date by which a seller must fulfil the obligations of a forward or futures contract
The ratio of the change in price of an option to the change in price of the underlying asset
A financial contract whose value is based on or derived from, a traditional security (such as a stock or bond), an asset (such as a commodity) or a market index. Financial spread betting is a derivative product
Germany's major securities market, including the Frankfurt Stock Exchange
Finspreads quote some differential prices such as the difference between Wall Street and the FTSE
Portion of a company's earnings paid to stockholders. Clients who have buy positions in share contracts are not entitled to dividend payments
Dow Jones Industrial Average. The index that reflects the performance of the top 30 US blue-chip stocks
The last trading day before expiry of options and futures on the same underlying asset
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European Central Bank
The key statistics of the economy that reveal the direction the economy is heading in
Exchange Delivery Settlement Price. Used by many markets to arrive at the Expiry Price
European derivatives exchange formed in 1998
European securities and derivatives exchange
European Currency unit introduced on January 1 1999
Exchange rate between EU member states whose currency in denominated in Euros and the U.S. dollar. Finspreads offers spread betting on currencies and foreign exchange
Exchange Traded Funds
Without dividend, that is, the purchase of stock will not receive the most recent declared dividend. Shares paying a dividend generally tend to decline on their ex-dividend date
Date at which a contract will be expired. Not to be confused with Last Day of Trading
Price at which contracts are settled if they are left to expiry
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Price at which theoretical future contracts should be trading above or below the leading future contract. Fair values for stock indices are determined by differentials in interest rates and dividend payments
Excessively rapid trading in a specific security that causes a delay in its electronic updating
First In, First Out. This is how multiple positions are arranged meaning that if more than one position is open in the same contract, the trade that was made second cannot be closed until all of the first one is
Execution of an opening or closing order
Indicating neither growth nor decline. Term is often used when a particular market in trading in a tight range
Financial Times Stock Exchange
Currency of another country. Finspreads offers spread betting on foreign exchange
Examination of a company's financials, assets, management, market niche, and products to determine value
Trading contract that specifies a future date for delivery of an object
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The ratio of a change in the option delta to a small change in the price of the asset on which the option is written
Where the market trades through a level specified by the client in an order. Market gaps are common during times of volatility. Guaranteed orders protect against gapping
The use of debt to increase exposure to high risk/reward. Gearing is also known as leverage. Financial spread betting is a leveraged product because you do not have to fund your total exposure when opening a position, only part of it, which is referred to as trading on margin
Term for a group of markets that we offer that are not listed on any exchange, for example IPOs and political bets
For a small fee you can protect an order against the risk of any market gaps
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A transaction that reduces risk
Hong Kong Futures Exchange
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International Monetary Market
A futures contract on an index in the futures market
Indices, either positive or negative, which indicate the strength and significant trends in our nation's economy. Inflation, interest rates and employment figures are examples
The rate at which the general level of prices for goods and services is rising
Amount needed as available trading resources in your account in order to open a position. This may be reduced by placing a stop loss on a market, where Orders Aware is available and this amount may increase depending on the size of your spread bet or CFD trade. See Step Margin.
Initial Public Offering. Private company's first offer of stock to the public
Material information about a company that has not yet been made public. It is illegal for holders of this information to make trades based on it
Cost for the use of capital expressed as a percentage of the sum of money borrowed. Finspreads offers spread betting on interest rates
Financial statement that reflects only a limited period of a company's financial statement, not the entire fiscal year
A put option that has a strike price higher than the underlying future price, or a call option with a strike price lower than the underlying futures price. Option prices can be traded with Finspreads
International Petroleum Exchange
The value of an option if it were to expire immediately with the underlying stock at its current price
Total amount of shares that have been issued
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Economic indicators that follow rather than precede a country's overall pace of economic activity
The last day on which you can open or close a trade in a particular market. Not to be confused with Expiry Date
A clearing house formed by a merger between The London Clearing House Limited and Clearnet
Economic indicators that change before the economy changes
Live pricing system that provides market depth
Leverage is the realisation that a large return can be obtained from a relatively small outlay with risks attached. Leverage is also known as gearing
Debt, financial obligation, or potential loss
London Interbank Offered Rate
London International Financial Futures and Options Exchange
Minimum selling or maximum buying price as instructed by the client. A limit order is an order to buy or sell a better price to where the market is currently trading
Price change, up or down, a product is allowed to make during one day of trading
A market characterized by the ability to buy and sell with relative ease
London Mercantile Exchange
Opening a buy position in expectation that the market price it will rise
London Stock Exchange
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The deposit or available credit needed on your account in order to have your positions open. Learn more about Finspreads margins
A call from the credit department for further funds to be deposited in the account to support additional exposure from running losses
The number of shares of a company in issue, multiplied by its share price
Dealer who maintains firm bid and offer prices in a market
A term used when the price of a stock rockets or dives in a direction away from its last price range
A specific order to open or close a position at the price that a market opens, but is not guaranteed
A specific order to open or close a position at the price that a market closes, but is not guaranteed
An order to have a position opened or closed when the underlying market trades at the specified price. Market orders are then filled at our quote at the time
March Terme International de France (Paris futures market)
Milan Stock Exchange
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National Association of Securities Dealers Automated Quotations
Refers to the price-weighted average of 225 stocks of the first section of the Tokyo Stock Exchange
A system that categorizes the size of transactions that are normal for a particular security and forces market makers to deal within these sizes
New York Board of Trade
New York Mercantile Exchange
New York Stock Exchange
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The price offered at which someone can buy; also called the ask
OCO orders you can leave two separate opening orders in the same market so that if one of them is triggered and filled, the other is cancelled. This leaves you with just the one open position
A long or short position whose value will change with a change in prices
A financial derivative instrument that gives the right to purchase (call) or sell (put) a fixed amount of stock at a specified price and within a certain time limit. Option prices can be traded with Finspreads
Also called the option seller; the party who grants a right to trade a security at a given price in the future
Buy or sell instruction given by a client to a dealer
A term used for the SETS system employed in London. Orders to buy and sell are allowed to collect on an order book where they can match and execute against one another
The Finspreads dealing quote. Orders can be left based on our quote, meaning they will not be triggered or filled until the Finspreads buy or sell price hits the specific level. These orders can be filled outside normal market hours. Some orders may be filled outside normal market hours if we offer this facility. Please refer to the Market Information Sheets for information on our trading hours.
A call option is out of the money if the strike price is greater than the market price of the underlying security. That is, you have the right to purchase a security at a price higher than the market price, which is not valuable. A put option is out of the money if the strike price is lower than the market price of the underlying security. Option prices can be traded with Finspreads
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Where the client has specified that they wish only part of their stake filled on a closing order
Face value of a security
A collection of investments, real and/or financial
Authorising someone to spread bet on your behalf. For this Finspreads would require your written notification and we would perform an identity check. Same as Authority to deal
Price Tolerance is the amount of slippage you are prepared to accept in order for your trade to be executed, even if at the time of execution, the price has moved away from that selected by you. This is commonly referred to as Slippage, though the benefit of Price Tolerance is that you can control the amount of slippage you are prepared to accept
Cancel an order
A financial derivative instrument used in options trading. A put would give an investor the right, but not the obligation, to sell shares at a fixed price up to a predetermined date. The opposite of a put is a call. Option prices can be traded with Finspreads
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A Finspreads quote will incorporate our spread which is the difference between the buying and selling price. Also see Our Quote
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A real-time stock or bond quote is one that states a security's most recent price as opposed to a delayed quote. Finspreads dealing prices update in real-time
Downturn in a country's economy, as measure by a decline in GDP
A price level above which it is supposedly difficult for a security or market to rise
Small individual investors who commit capital for their personal account rather than on behalf of another
International news and quotation service based in London
A privilege allowing existing shareholders to buy shares shortly before they are offered to the public at a specified and usually discounted price and usually in proportion to the number of shares already owned. Such corporate actions mean that Finspreads will adjust any position accordingly
Someone who seeks the least risky products
Someone who seeks the most risky products, in the hope of higher returns
Return On Capital Employed
Finspreads often do free trading seminars in major cities around the UK and Europe
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The Standard and Poors index of the top 500 US companies
Stock Exchange Automated Quotations
Securities and Exchange Commission
Used to characterize a group of securities that are similar with respect to type and industry
Same as taking a short position
A figure determined by the closing price
Opening a sell position in expectation that the market price it will fall
See Gap or Market Gap
A estimation made following research
Sharp up or down movement in the value of something
Market in which commodities are bought and sold for cash and immediate delivery
The difference between the buy and sell price
Step Margin is the process by which the amount of initial margin charged per trade may increase depending on the size of your spread bet. The amount of initial margin charged for any additional trades [within the same market], occur at specified step margin levels
An order to close a position at a particular level when the price moves against you
An opening or closing order to buy or sell at a worse price to where the market is currently trading
Purchase or sale of an equal number of puts and calls with the same terms at the same time
Buying or selling an out-of-the-money put option and call option on the same underlying instrument, with the same expiration. Profits are made only if there is a drastic change in the underlying instrument's price
Plan of action for achieving a goal
The stated price per share for which underlying stock may be purchased or sold by the option holder upon exercise of the option contract. Option prices can be traded with Finspreads
Economic theory that simply states price is a function of the market, supply and demand
A price level below which it is supposedly difficult for a security or market to fall. That is, the price level at which a market tends to stop falling because there is more demand than supply; can be identified on a technical basis by seeing where the stock has bottomed out in the past
Temporary halt in trading in a particular security, in advance of a major news announcement or to correct an imbalance of orders to buy and sell
Refers to a type of short term (one day to a couple of weeks) trading, triggered by technical analysis, for example, momentum
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Acquiring control of a corporation by stock purchase or exchange
Forming an opinion as to where market prices are headed and acting on it
Maximum retail price for a product under development. In the context of takeovers, the price at which an acquirer aims to buy a target firm. In the context of options, the price of the underlying security at which an option will become in the money. In the context of stocks, the price that someone hopes a stock will reach in a certain time period
Under current UK legislation, any capital gains made through financial spread betting in tax free
Analysis of a financial market by charting its performance, using historical patterns, and focusing on trends
The minimum point movement in each market, for example the FTSE has moved 10 ticks this equates to a 10 index point move in the FTSE
The time remaining until a financial contract expires
Portion of an option price that is in excess of the intrinsic value, due to the amount of volatility in the stock; sometime referred to as premium. Time value is positively related to the length of time remaining until expiration
Overall difference between a countrys imports and exports
Range between the highest and lowest prices at which a stock is traded
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The security or market that Finspreads prices are based on (derived from)
Funds that trading margin is not using i.e. available trading resources
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Same as open P + L e.g. any running profit from an open position can be used as additional margin. Conversely, any running loss will need to be funded, especially if there is no stop loss in place
Situation that changes rapidly or suffers from extreme fluctuations
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Referring to the index of the top 30 US traded stocks
A derivative product that is a certificate that authorising the holder to buy securities at a certain price. Warrants are like call options, but with much longer time spans-sometimes years
A list of markets selected for surveillance. Watch lists can be created in your account online
An order remains working until it is filled or deleted
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End of accounting period when the books are closed out. Also, refers to Finspreads Year End bets tradable on our major indices
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