CFD Trading Glossary

Your go-to resource for understanding CFD trading terminology. Explore key terms and definitions to enhance your trading knowledge.

An agreement to exchange the difference in the value of an asset between the time the contract is opened and when it’s closed.

The use of borrowed capital to increase the potential return of an investment. It can magnify both profits and losses.

The amount of money required in your account to open and maintain a leveraged position.

The difference between the buying (ask) and selling (bid) price of an asset.

An order placed with a broker to buy or sell when the price of an asset reaches a specified level, designed to limit losses.

An order placed with a broker to buy or sell when the price of an asset reaches a specified level, designed to secure profits.

The degree of variation of a trading price series over time, often measured by standard deviation.

The ease with which an asset can be bought or sold in the market without affecting its price.

A market condition in which the prices of securities are falling, typically accompanied by widespread pessimism.

A market condition in which the prices of securities are rising, typically accompanied by optimism.

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