Bid Price
The price at which you can Sell or go Short.
Bid/Offer Spread
The difference between the Bid Price and the Offer Price.
Buy
Opening or Closing a position by going Long or placing an Up-Bet.
Buy to Open
Opening a new position to go Long a particular Instrument.
Cash/ Equity Balance
The amount of money available in your account for trading – i.e. the actual cash balance less any Margin requirement.
Controlled Risk Bet
A bet placed with a guaranteed closing position placed at the time of opening the bet.
Current Position
Your Open positions at any particular time.
Daily/Daily Cash
The Daily price of an Instrument typically linked to the underlying price of the Market. Typically a Daily Cash bet will expire at the end of the trading day at the Cash Price.
Daily Futures
The Daily price of an Instrument linked to the Futures Market price. Typically a Daily Futures bet will expire at the end of the trading day at the prevailing Futures Price.
Derivative
When used in a financial sense means any financial product that has been derived from another e.g. Index Futures trading derived from the dealing in equities.
Down-Bet
Opening or Closing a Position To Sell or go Short
Fair Value
The relationship between a futures contract and the actual value of a market Index. It is calculated by taking into account interest and dividends payments. If the futures price is higher than ‘fair value’ then traders are expecting the Index to go higher and vice versa.
Good ’til Cancelled (GTC)
An order placed that will remain until triggered or cancelled.
Good For Day (GFD)
An order placed that will be cancelled automatically at the end of the trading day if not triggered or cancelled.
Index/Indices
A portfolio of stocks representing a portion of the market. E.g. FTSE100, Dow Jones Industrial Average.
Instrument
A product that can be traded. So called because documents (I.e. the delivery instruments) are used in place of physical underling product in the delivery of
a futures contract.
Leverage
Increasing the power of your capital by trading on margin. I.e. depositing only a % of the value of your position.
Limit Order
An order to either enter the market at a more favourable price or to ‘lock in’ profits.
Long
A position when you have bought the market.
Margin
The deposit required to open a position.
Margin Call
A request for additional funds to maintain your existing position.
Mark To Market
The periodical settlement (but not closure) of your position to reflect the current market price.
Market Order
An order placed at the prevailing market price.
Offer Price
The price at which you can Buy or go Long.
Out of Hours
Outside the normal trading hours of a particular market.
Point
The denomination at which an Instrument is divided into. E.g. an Index is usually 1 Index point, a currency .0001 and a Stock .01. Sometimes refereed to as a ‘tic’.
Quarterly Contract
A contract that expires at the end of the near Quarter.
Sell
Opening or Closing a position by going Short or placing a Down-Bet.
Sell To Close
Closing an existing position by Selling a particular Instrument.
Short
A position when you have sold the market.
Spread
The difference between the Bid Price and Offer Price
Stop/Limit to Close
An order to Close a position once a particular point has been reached has been reached
Stop/Limit to Open
An order to Open a position once a particular point has been reached.
Stop Order
An Order to enter the market at a more favourable price or to limit losses.
Up-Bet
Opening or Closing a Position to Buy or go Long.