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
Back to
top
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
Back to
top
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
Contract For Difference. A leverage share trading product. Go to
http://www.minicfds.com/ for further
information
Person who analyses markets with the use of charts
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
Back to
top
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
Back to
top
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
Back to
top
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
Back to
top
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
Back to
top
A transaction that reduces risk
Hong Kong Futures Exchange
Back to
top
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 on deposit or credit in order to open a position.
This can be reduced by placing a stop loss
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
Back to
top
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
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
Back to
top
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
Back to
top
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
Back to
top
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
Back to
top
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
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
Back to
top
A Finspreads quote will incorporate our spread which is the
difference between the buying and selling price. Also see Our
Quote
Back to
top
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
Transferring a trade that is near expiry into the next contract
period
Back to
top
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
Unique telephone service offered by Finspreads for you to check
your account. Call 08700 11 33 55
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
Back to
top
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
Back to
top
The security or market that Finspreads prices are based on
(derived from)
Funds that trading margin is not using i.e. available trading
resources
Back to
top
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
Back to
top
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
Back to
top
End of accounting period when the books are closed out. Also,
refers to Finspreads Year End bets tradable on our major
indices
Back to
top
|