Trading Basics
CFD
Contract for difference.
An OTC financial derivative where the counterparties agree to exchange the change in a price.
No underlying assets are exchanged.
Other Trading Basics
Cable
Another name for the GBP – USD exchange.
Around half a trillion dollars is traded between the two currencies everyday, making it the third most popular currency pair to trade in behind EUR – USD and USD – JPY.
Buy Stop
An order type where the trader wishes to go long above the current market price.
Balance
A summarised financial result of all funds deposited in, and withdrawn from the customer’s account, and of all closed positions in that account.
Start learning
Learn the skills needed to trade the markets on our Trading for Beginners course.
