Bear Market
A market distinguished by falling prices.
Bid
The price level at which a CFD 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 controlled by a CFD 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 CFD trading dividends are a cash modification to the account. Long position holders are credited while 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 is price weighted.
Expiration/Expiry
A few CFD markets have a fixed duration such as forward contracts which expire at a pre-determined time and date in the future.
FTSE 100
An index of the top one hundred 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
Cash adjustments implemented to reflect the economic effects of receiving or owing the notional quantity of equity controlled by a CFD position.
Leverage
Leverage is a proportion representing 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 of money required from a client to cover potential 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 2nd largest stock exchange in the United States which traditionally contains many of the technology companies.
Nikkei 225
An index containing the top 225 market shares listed in the Tokyo Stock Exchange, as weighted by price.
Offer
The price level at which you can buy a CFD.
Position
An open trade.
Quarterly CFDs
A kind of future instrument with expires usually three months apart. Prices are generally quoted for the following one or two quarter months.
Realised 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 pre-determined market price once the market has closed.
S&P 500
The Standard and Poor 500, is an index of the top 500 stocks listed in the New York Stock Exchange (NYSE) as weighted by market capitalization.
Spread
The disparity between the buy and sell price for a particular instrument.
Stock Exchange
The given market on which various 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 in price movements of a market, over a period of time.
Are you using social indicators to make your investment decisions? Social indicators are based on real trades made by thousands of different traders. eToro Openbook is the largest social trading network and provides you with live trading information to better form your investment decisions. Visit eToro Openbook and start using social indicators today!