Financial Glossary

  • Contracts For Difference

    What is a CFD trade? In finance, a contract for difference, or CFD, is a type of financial derivative that allows traders to profit from movements in asset prices. Speculations on prices moving up are known as long positions, and…

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  • Handle

    What is a ‘handle’ in trading? In trading, a handle is the whole number part of a price quote, disregarding the decimal. For example, if a quote for a stock is £78.42, the handle will be £78. Traders often refer…

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  • DAX

    What is the DAX? The Deutscher Aktienindex, commonly referred to as the DAX index, or simply DAX, is a blue-chip stockmarket index consisting of the 30 largest German companies trading on the Frankfurt Stock Exchange. Big names like Adidas, BMW,…

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  • Deflation

    What is Deflation? In economics, deflation is a sustained decrease in the prices of goods and services and a contraction in the supply of circulated money within an economy. It is the opposite of inflation – in fact, deflation only…

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  • Money Supply

    What is Money Supply? The ‘money supply’ is the total amount of monetary assets available, like currency in circulation and demand deposits convertible into cash, in an economy at a specific time. This definition may vary, as sometimes it is…

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  • Liquidity

    What is liquidity? In economics, liquidity refers to the amount of cash, cash equivalents or other assets that can be converted into cash without difficulty. Money, or cash, is the most liquid asset out there. It can be easily exchanged…

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  • Dividend

    What is a dividend? In finance, dividends are company profits that are paid to its shareholders. Usually, they can be distributed as cash deposited into a bank account (cash dividend) or in the form of further shares (stock dividend), if…

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  • Volatility

    What is Volatility? In finance, volatility refers to the fluctuation of an asset or financial instrument’s price over time, measured by the standard deviation of logarithmic returns. Volatility quantifies the variations in the price of a commodity, currency, index or…

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  • Margin

    What is a margin? In finance the definition of ‘margin’ varies depending on the context. Buying on margin, or simply “to margin”, means buying an asset using borrowed funds provided by a broker. For example, if I want to buy…

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  • Index

    What is an Index? In finance, an index is a statistical indicator for a change in value of a securities market. It is computed by weighting the prices of all stocks or bonds within a certain sector in order to…

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