Showing category "Dictionary" (Show all posts)

Gearing or Leverage

Posted by Editor on Friday, January 8, 2010, In : Dictionary 

This term refers to the fact that spread betting allows the client to buy (or sell) a financial product with substantially less money than the actual full market value of that financial product. So gearing is the correlation between potential profit or loss against initial deposit. A highly geared or leveraged bet involves substantial risk to your money (but also gives the possibility of high returns).


Continue reading ...
 

Computer Generated Stop Loss (CGSL)

Posted by Editor on Friday, January 8, 2010, In : Dictionary 
This is the maximum figure used to automatically allocate a Stop-Loss on newly opened positions. In the event that a client has sufficient funds to cover the CGSL on deposit, the Trading System will assign a stop at a point 80% of the CGSL away from the opening price of the trade. Otherwise, the system will allocate a stop according to funds available in your account.
Continue reading ...
 

Trading Adviser Report (TAR)

Posted by Editor on Thursday, November 19, 2009, In : Dictionary 

A performance report produced by an investment manager that is made available, usually on a monthly basis, to clients with holdings in a particular product. The report details the change in net asset value of a product and explains performance in light of market conditions as well as any relevant portfolio changes and developments.


Continue reading ...
 

Futures

Posted by Redaktionen on Thursday, November 19, 2009, In : Dictionary 

A future is a derivative instrument that involves a contract to buy or sell an asset (stock index, commodity, currency, fixed income or other security) for delivery at a future date at a specific price.


Continue reading ...
 

Derivatives

Posted by Editor on Thursday, November 19, 2009, In : Dictionary 
Financial contracts such as futures, options and various securities that offer 'synthetic' access to an underlying asset such as a commodity, stock market or fixed income security. The price movements of a derivative generally follow the price movements of the underlying asset but derivatives generally require only small amounts of capital (margin) to gain exposure to the underlying asset.

Continue reading ...
 

Leverage

Posted by Editor on Thursday, November 19, 2009, In : Dictionary 

Leverage
and gearing effectively mean the same thing: the process or effect of 'gearing up' or magnifying exposure to an investment strategy, manager or asset. Leverage can be achieved by borrowing capital or using derivatives. A leveraged investment is subject to a multiplied effect in the profit or loss resulting from a comparatively small change in price. Thus leverage offers the opportunity to achieve enhanced returns, but at the same time can result in a loss that is proportionally great...
Continue reading ...
 
 

News


Get the latest information about the forex trading market. News from around the world.