Trading Basics
Contract Size
The minimum amount a product can be traded in. Normally these are standardised, like a lot in fx.
Other Trading Basics
Cost of Carry
The cost to a trader of maintaining a position. This might be in form of overnight financing on simple CFD trades but can also include the costs to insure, transport or finance on more complex trades.
CFD
Contract for difference.
An OTC financial derivative where the counterparties agree to exchange the change in a price.
No underlying assets are exchanged.
Start learning
Learn the skills needed to trade the markets on our Trading for Beginners course.
