Ask price
The quoted price for buying an instrument. Together with the bid, it determines the spread.
TRADING GLOSSARY / A–Z
Trading glossary (A–Z)
Understand common trading terms through clear definitions.
Bid price
The quoted price for selling an instrument.
Contract for difference
A derivative contract that settles price changes, usually without ownership of the underlying asset.
Equity
Account balance plus unrealised profit or loss on open positions.
Leverage
The relationship between notional exposure and margin; it can amplify gains and losses.
Liquidity
The ability of a market to absorb buy and sell orders, which can affect spreads and execution.
Lot size
A unit of trade size; the contract quantity depends on product specifications.
Margin
The funds required to open or maintain a position.
Spread
The difference between bid and ask prices for an instrument.
Stop loss
An order instruction used to limit risk. Price gaps can prevent execution at the chosen level.
Overnight financing
A charge or adjustment that may apply when a position crosses the specified settlement time.
Volatility
The degree of price change over a period.
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