Financial Spread Betting Glossary

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ADR

American Depository Receipt

AEX

Amsterdam Stock Exchange

After hours dealing or trading

Securities trading after regular trading hours on organised exchanges

Analyst

Employee of a bank, brokerage or fund manager who studies companies and makes buy-and-sell recommendations

Arbitrage

The process where a gap between two Market Makers' prices is exploited by buying from one while simultaneously selling to the other to lock in a profit

ASE

Athens Stock Exchange

Ask or Ask Price

The quoted offer at which someone can Buy. Also called the Offer Price

At Par

At a price equal to the face value of a security

Auction

Many auctions occur in the financial markets. The most common is the Post Market Auction on the FTSE 100. This occurs from 1630 to 1635 and then the official settlement is declared.

Authority to Deal

Allowing someone to spread bet on your behalf. This will require your written notification and some cases an identity check

Backwardation

This occurs when the bid price exceeds the offer price for a stock. This is a market distortion which usually occurs when stock is suspended or under a share repurchase scheme

Base

A technical analysis tool. A chart pattern depicting the period when the supply and demand of a certain stock are in relative equilibrium, resulting in a narrow trading range. The merging of the support level and resistance level

Base Rate

The interest rate at which the Bank of England provides liquidity to the GBP Money Market / retail banks

Basis

The difference between the price of a futures contract and the underlying market

Basis Point

Basis Points are a way of expressing variations in bond yields. One basis point is a hundredth of one per cent (0.01 per cent). Basis points also are used for interest rates

Bear or Bear Market

A 'bear' is pessimistic about the market and expects it to fall. A 'bear market' is a term used to describe a falling market, or one that is trending lower. Opposite of a 'bull'

Bet Per

The minimum movement you can bet on. This may differ from the underlying market tick size.

Beta

The measure of an asset's risk in relation to the market

Bid or Bid Price

The quoted price at which an investor can Sell a stock, index or commodity

Bid-Ask Spread

The difference between what buyers are willing to pay and what sellers are asking for in terms of price

Blue Chip Stock

Blue Chip companies are large, well established and conservatively managed. The term refers to the highest valued poker chip.

BOBL

Medium term (5 year) German Government Bond

Bollinger Bands

Plus or minus two standard deviations where the standard deviations are calculated historically in a moving window estimation. Hence, the bands will widen if the most recent data is more volatile. If the prices break out of the band, this is considered a significant move

Bonds

A bond is an IOU. You effectively lend money to a company or government in return for a fixed level of income (coupon) and the guaranteed return of your investment at the end of the bond's life (known as 'the maturity date'). In return you receive a certificate that you can sell on in the secondary market.

BSE

Brussels Stock Exchange

Bull or Bull Market

A Bull is someone who thinks the market will rise. A 'bull market' is one that is rising, or is trending higher. The opposite to 'bear'

BUND

Long term (10 year) German Government Bond

Buy / Buy Bet

A bet that the price of a particular market / financial instrument will rise. Also called an Up Bet or Going Long.

Buy Order

An instruction to Buy at a different price to where the market is currently trading

Cable

Market nickname for Sterling/US dollar exchange rate

CAC 40 Index

A Stock Index of 40 of the 100 largest companies listed on the forward segment of the official list of the Paris Bourse

Call or Call Option

A 'call' option gives the purchaser the right, but not the obligation, to buy at a pre-arranged fixed price. A 'put' is the opposite of a 'call'.

Capital Gains Tax

A tax on investment profits. Spread betting winnings are free of any UK Capital Gains Tax under current UK laws

Cash or Spot

The current level of an underlying market

CBOT

Chicago Board of Trade

CFD

Contract For Difference. A leverage share trading product

Chartist

Person who analyses markets with the use of charts. Also see Trading Charts.

Closing Price

The price at which a product was traded to close the open position. Also refers to the price of the last transaction in a day’s trading session

Closing Trade

A second bet of equal size to the initial bet but in the opposite direction, therefore closing out the trade and resulting in a profit or loss

CME

Chicago Mercantile Exchange

COMEX

Commodity Exchange (part of NYMEX)

Commodities or Commodity Markets

Physical products, such as foods or metals, whose prices are subject to supply and demand. These are usually traded via Futures Contracts

Compliance Department

A department in all organised stock exchanges employed to ensure that all companies, traders and brokerage firms comply with the Financial Services Authority

Contingent Orders

Instructions you give to attach a stop loss and/or limit order to your opening order if it is triggered and filled. Sometimes called “if done orders”.

Contract Note

The confirmation of your trade describing the market, the unit of trading, the action (buy or sell), the price and the expiry date. Can be e-mailed or sent by post

Controlled Risk Bet

A bet where the loss is pre-defined – a bet with a guaranteed stop loss.

Cost of Carry

The interest intrinsic in share futures prices, excluding any dividends payable during the contract period

CPI

Consumer Price Index, used as a measure of inflation

Credit Account

A Credit Account is often available to clients subject to their financial status and original proof of funds. Approval of a credit account will be at the discretion of Operator and will be subject to certain financial conditions

Credit Allocation

The credit allocation will allow a client to maintain unrealised losses without paying margin. As the markets move up and down positions will acquire unrealised profit or loss, as long as the clients open positions remain within the credit allocation then no funds will be due

Cross Rates

Foreign exchange rate between two currencies other than the US dollar

Currencies

Money in public circulation

Currency future

A financial future contract for the delivery of a specified foreign currency

Daily Bet

A position taken during the day where the expiry of the contract is at an agreed time on the same day, usually the market closing price. ie Bets that must be settled on the day they are made

DAX

Dax 30 or DAX - The index of the Germany's top 30 companies, in terms of order book volume and market capitalisation.

Day Trading

Opening and closing of a position in the same contract in one day

Dealing (Trading) Desk

You phone a Dealing Desk in order to trade

Delist (de-list)

To remove a stock's listing on an exchange

Deliver

The sale of a futures contract may require the seller to deliver the commodity during the delivery month, if the short position is not offset prior to that time

Delivery Date

Date by which a seller must fulfill the obligations of a forward or futures contract

Delivery Month

The specified month in which a futures contract is delivered or expires. These are normally March, June, September and December but may also be on a 1-2-3 month cycle e.g. January, February, March.

Deposit
Funds that need to be on your account in order to place or hold a bet. It is not the total amount that can be lost on a trade.

Deposit Margin

Deposit margin is there to ensure you have enough cash in your account to cover any potential losses that might occur if the market moves against you. Deposit margin can vary from 5% to 25% of the underlying value of the deal. Also called Initial Margin Requirement.

Derivative

A financial instrument whose value is based on or derived from, a traditional security (such as a stock or bond), an asset (such as a commodity) or a market index. Financial spread betting is a derivative product i.e. the value is based upon the trading value of the underlying stock, security or exchange rate

Deutsche Borse

Germany's major securities market, including the Frankfurt Stock Exchange

Discount

The amount by which one contract month differs from another month in the same instrument, e.g. December FTSE is trading at 6300 whilst March is at 6350; thus, December is at a discount of 50 to March.

Dividend

Portion of a company's earnings paid to stockholders. Clients who have Spread Betting Buy positions in share contracts are not entitled to dividend payments. Dividends are paid at a company's discretion.

DJIA

Dow Jones Industrial Average. The index that reflects the performance of the top 30 US blue-chip stocks

Double Witching Day

The last trading day before expiry of options and futures on the same underlying asset

Down Bet

A bet taken that the market will fall. Also referred to as a 'Sell' or 'Going Short'.

Dow Jones Index

The index that reflects the performance of the top 30 US blue-chip stocks

ECB

European Central Bank

Economic Indicators

The key statistics of the economy that reveal the direction the economy is heading in

EDSP

Exchange Delivery Settlement Price. Used by many markets to arrive at the Expiry Price. The average traded price over a set period that determines the settlement price for some futures contracts

ETF

Exchange Traded Funds

EUREX

European derivatives exchange formed in 1998

Euro

European Currency unit introduced on January 1, 1999

Eurodollar

Exchange rate between EU member states whose currency is denominated in Euros and the US dollar

EURONEXT

European securities and derivatives exchange

Ex-Dividend

Without dividend, that is, the purchase of stock will not receive the most recent declared dividend. Shares paying a dividend often drop in value on their ex-dividend date

Expiry Date

The date that a spread bet expires. The trade is settled automatically on this date unless the trader closes the bet beforehand or instructs the bookmaker to roll the bet over to the next expiry date. Not to be confused with Last Day of Trading

Expiry Price

Price at which contracts are settled if they are left to expiry

Exposure

Describes how much of your portfolio is invested in a particular sector

Fair Value

This is the theoretical price at which a futures contract should trade. Fair values for stock indices are determined by differentials in interest rates and dividend payments

Fast Market

Excessively rapid trading in a specific security that causes a delay in its electronic updating

Fill

Where your order is executed (carried out).

Flat

Indicating neither growth nor decline. Term is often used when a particular market in trading in a tight range

Floatation

When a company's shares are offered to investors and quoted on an exchange for the first time

Foreign Exchange or FX or Forex

Currency of another country

Forex

An abbreviation for Foreign Exchange

FSA

The Financial Services Authority. The governing body that regulates the financial services industry including spread betting. Enforces strict rules on the conduct of spread betting in the UK. Superseded the SFA on the April 29, 2000. FSA website.

FTSE

Financial Times Stock Exchange. These firms are jointly responsible for the compilation and maintenance of the main stock indices reflecting the performance of the UK's top shares

FTSE 100

The index that highlights the performance of the UK's top 100 companies, as ranked by their market capitalisation. Sometimes referred to as UK100

FTSE 250 or FTSE MID 250

The index of the next 250 companies, after the top 100

FTSE 350

The index of the top 350 UK companies by market capitalisation. It is a combination of the FTSE 100 and FTSE 250 stocks.

FTSE ALL SHARE

An index covering about 800 shares representing 98% of UK market value. There are indices for business sub-sectors as well. This is the aggregation of the FTSE 100, FTSE 250 and FTSE Small Cap Indices

FTSE Small Cap

The FTSE companies outside the FTSE 350 Index. Represents about 2% of the UK market capitalisation.

Fundamental Analysis

Examination of a company's financials, assets, management, market niche, and products to determine value

Futures

Entering a contract now to fix a price for the future. At expiry the difference between the contract price and the actual settlement price is usually paid or received

Futures Contract

Trading contract that specifies a future date for delivery of an object

Futures Style Bet
Bets which are structured like futures, generally expiring at the next quarter(“near month”) or the quarter after that (“far month”).

FX

An abbreviation for Foreign Exchange

Gamma

The ratio of a change in the option delta to a small change in the price of the asset on which the option is written

Gap

Where the market trades through a level specified by the client in an order. Market gaps are common during times of volatility. A 'Guaranteed Order' protects against gapping

Gaps Through

The market trades through the level specified in your order, without actually trading at that given level.

Gearing

The use of debt to increase exposure to high risk/reward. Gearing is also known as leverage. Gearing is the ratio of a company's borrowing to its assets. A highly geared company is one that has a lot of debt as a proportion of its total assets. Gearing also relates to the Notional Trading Requirement when compared to the total underlying value of a trade. Financial Spread Betting is a leveraged product because you do not have to fund your total exposure when opening a position, only part of it, which is referred to as Trading on Margin

Gilts

UK Government Bonds. So called because the certificates were originally gilt edged.

Good For The Day (GFD)

An order, which if not filled, expires at close of business on the day it is received

Good Till Cancelled (GTC)

An order that will be carried forward indefinitely until it is either filled or cancelled by you

Good Till Date

An order, which if not filled, expires at close of business on a date specified by you

Grey Market

A term for informal markets that are not listed on any exchange, for example IPOs and political bets

Guaranteed order

For a small fee you can protect an order against the risk of any market gaps

Guaranteed Stop

This is a controlled risk bet where you are guaranteed to exit your position at your chosen level irrespective of volatility. You may incur a small initial charge

Hedge or Hedging

Reducing the risk of an outright position in one market by the buying or selling of contracts in a similar or derivative market, eg 'hedging a Short FTSE position by Buying a FTSE Call option'.

HKFE

Hong Kong Futures Exchange

If Done Order

See Contingent Orders

IMM

International Monetary Market

Index or Indices

A statistical indicator that represents the total value of the stocks that constitute it eg the FTSE and Dow Jones are both indices. The FTSE 100 index, for example,  is calculated by

Index Futures

A futures contract on an index in the futures market

Indicators

Indices, either positive or negative, which indicate the strength and significant trends in a nation's economy. eg inflation, interest rates and employment figures are all indictors

Inflation

The rate at which the general level of prices for goods and services is rising

Initial Margin Requirement

This is the amount needed on deposit or credit in order to place a trade. Also known as Notional Trading Requirement (NTR). This can be reduced by placing a stop loss

Inside Information

Material information about a company that has not yet been made public. It is illegal for holders of this information to make trades based on it

Interest Rate

Cost for the use of capital expressed as a percentage of the sum of money borrowed

Interim Dividends

A company's distribution of profits to shareholders halfway through the financial year

Interim Report

Financial statement that reflects only a limited period of a company's financial statement, not the entire fiscal year. All companies quoted on the London stock exchange must release an interim report after the first 6 months of their financial year. It tends to concentrate on profitability, and may be used to justify an interim dividend

IPE

International Petroleum Exchange

IPO

Initial Public Offering. A private company's first offer of stock to the public

Issued Share Capital

Total amount of shares that have been issued

Junk Bond

A high risk bond because the issuer has a high probability of defaulting. This higher than normal risk will generally lead to the bond having a high yield.

Last Dealing Day
The last Day on which you can open or close a trade in a relevant market. Not to be confused with Expiry Date

Last Trade

Normally the last traded price in a particular market

Leading Indicators

Economic indicators that change before the economy changes

Leverage

Leverage is the ratio between the initial outlay and the equivalent position in the underlying market. Leverage is the realisation that a large return can be obtained from a relatively small outlay with risks attached. Also known as gearing

Liability

Debt, financial obligation or potential loss

LIBOR

London Inter Bank Offer Rate. The fixed daily interest rate at which London banks will lend money to each other.

LIFFE

London International Financial Futures and Options Exchange

Limit Order

An order to buy or sell a product when it hits a certain price. A limit order is placed when you want to do a trade at a better price than the current quote. Limit orders can be filled at better levels than expected. This can occur when markets do not move smoothly. They "gap" from one price to another at times and your limit order will be filled at the next price

Limit Up / Limit Down

The maximum price change, up or down, a product is permitted by some exchanges during one day of trading

Liquid / Illiquid

The volume of business that can be transacted in the market. Highly liquid markets typically have narrow spreads and can accommodate large deal sizes. Illiquid markets have wide spreads, small deal sizes and are often erratic

Liquidation

Conversion of assets into cash

Liquidity

A measure of how easily a cash can be converted into cash at full value. In the contexts of share dealing and financial spread betting this refers to how easily it is to trade a particular share

LME

London Mercantile Exchange

Long

A bet taken in anticipation of a rising market, an 'up bet'. To Go Long means to Buy

Long Gilt

Alternative name for UK 10 year government bonds

Long Term Bet

In financial spread betting this general relates to bets spanning months rather than a few days or weeks

LSE

London Stock Exchange

Maintenance Margin

Maintenance margin is again used to make sure your have enough money to fund a present position at all times.

Margin

The amount of money  needed in your account in order to start / maintain your positions open

Margin Calculation

Margin is often calculated as £/tick x (stop loss + Initial Spread) eg A Client buys £75 per tick of Vodafone Future with a stop loss of 50 ticks, Margin Required = £75 x (50+6) = £4200

Margin Call or Margining

Where you are advised by the spread betting firm that you need to put more money into your account to fund your open bets.

Market Capitalisation

The market value of a company. The total number of shares in issue multiplied by the share price. Often abbreviated to 'Market Cap'

Market Gap

A term used when the price of a stock rapidly increases or decreases in a direction away from its last price range

Market Maker

A dealer who makes a two-way bid and offer price giving a customer the opportunity to buy or sell

Market On Close Order

A specific order to open or close a position at the price that a market closes, but is not guaranteed

Market On Open Order

A specific order to open or close a position at the price that a market opens, but is not guaranteed

Market Order

An order to have a position opened or closed when the underlying market trades at the specified price. Market orders are then filled at the current market price. Also known as a Market Price Order

MATIF

March Terme International de France (Paris futures market)

Maturity Date

The date and time at which a bet expires

Mid Price

The price half-way between the buy and sell prices

Minimum Size

The minimum bet size per point in a particular market

MSI

Milan Stock Exchange

NASDAQ

National Association of Securities Dealers Automated Quotation System. A composite index that reflects the performance of high tech stocks in the US. An Index of 100 of the largest domestic and international securities listed on the Nasdaq Stock Market based on market capitalisation

Nikkei 225

Refers to the price-weighted average of 225 stocks of the first section of the Tokyo Stock Exchange

Normal Market Size (NMS)

The amount that can be traded on a typical market price quote. For shares this is calculated on the previous year's average daily turnover of each individual stock - currently 2.5% of the total volume of shares for each company. Market makers are not obliged to provide a quote for a transaction above normal market size

Notional Trading Requirement

This is the amount needed on deposit in order to place a trade.

NYBOT

New York Board of Trade

NYMEX

New York Mercantile Exchange

NYSE

New York Stock Exchange

OCO

see One Cancels the Other

Offer / Offer Price

The price at which you can Buy a stock, index or commodity. Also called the ask

One Cancels the Other (OCO)

Two linked orders where, if one is filled, the other is automatically cancelled. With One Cancels the Other (OCO) orders you can leave two separate opening orders on the same instrument so that if one of them is triggered and filled, the other is cancelled. This leaves you with just the one open position

Open position

Trades that are currently running and are yet to be closed (settled)

Open Trade Equity (OTE)

Unrealised profit or loss on an open position.

Operator

A company that offers trading eg a Spread Betting.

Order

A Buy or Sell instruction given by a client to a dealer. ie a pending trade that is only executed as a trade when the trader's conditions are met. eg a spread bettor might place an order to buy an index future if its price falls to a certain level

Order Book

A term used for the SETS system employed in London. Orders to buy and sell are allowed to collect on an order book where they can match and execute against one another

Orders Aware Margining (OAM)

A calculation that takes into account active stop orders to reduce the overall margin requirement

OTE' Inclusion Ratio

The proportion of Open Trade Equity (OTE) that can be used to finance current or future trades

Our Quote

The two-way (bid/offer) price made by the Operator on which you can trade. Orders can often be left based on the 'Our Quote', meaning they will not be triggered or filled until the Operator Buy or Sell price hits the specific level

Our Quote Order

A stop, or limit, is usually placed on the basis of Our Quote. An order will be filled if it matches the Buy or Sell price of the Operator

Out-of-the-money Option

A call option is out of the money if the strike price is greater than the market price of the underlying security. That is, you have the right to purchase a security at a price higher than the market price, which is not valuable. A put option is out of the money if the strike price is lower than the market price of the underlying security.

Parity

When futures are trading at the same level as the spot

Par Value

Face value of a security. This generally carries little meaning in trading but represents the nominal claim of shareholders should a company go bankrupt.

Partial Fill or Part Fill

Where the client has specified that they wish only part of their stake filled on a closing order

Penny Shares

Firms with a low market capitalisation. Many stocks on smaller exchanges such as AIM are penny shares

Pip

Percentage in Point. This is normally used in FX trades and refers to the last quoted digit of a foreign exchange rate

Point

The unit of a contract/bet otherwise known as a Tick or Pip. A point is the single incremental move up or down of the instrument being bet on. For UK shares one point equates to a single penny move in the price.

Portfolio

A collection of investments, real and/or financial

Pounds Per Point

The usual way of describing a bet. With UK shares one point equals one penny so you if you bet one pound per point you will lose or gain one pound for every point that the share moves

Power of Attorney

Authorising someone to spread bet on your behalf. Same as Authority to Deal

Pre-market

Certain spread betting traders will make a market on some securities eeven before the market has openedin the exchange. For example the London Stock Exchange opens at 8am but some spread betting companies will normally quote prices on teh biggest and most popular markets from 7am.

Premium

1 - The amount by which one contract month differs from another month in the same instrument, e.g. December FTSE is trading at 6300 whilst March is at 6350 thus March is at a premium of 50 over December.

2 - The amount by which a price of one instrument is higher than that of a similar instrument.

3 - The premium is the amount paid for an option

Pull an Order

Cancel an order

Put or Put Option

A financial derivative instrument used in options trading. A put would give an investor the right, but not the obligation, to sell shares at a fixed price up to a predetermined date. The opposite of a 'put' is a 'call'.

Quarterly Bets

Bets that remain valid for a quarter of a year, but which can be closed out any time before the expiry date

Quote

see Our Quote

Real Time
A real-time stock or bond quote is one that states a security's most recent price as opposed to a delayed quote

Recession

Downturn in a country's economy, as measured by a decline in GDP

Resistance Level

A price level above which it is supposedly difficult for a security or market to rise. These are usually linked to Support Levels which are price levels where it is seen as difficult for prices to fall below.

Retail Investor

Small individual investors who commit capital for their personal account rather than on behalf of another

Reuters

International news and quotation service based in London

Rights Issue

A privilege allowing existing shareholders to buy shares shortly before they are offered to the public at a specified and usually discounted price. This is usually in proportion to the number of shares already owned

Risk

The possibility of losing money, or not making as much money as expected, on a trade.

Risk Adverse

Someone who seeks the least risky products

ROCE

Return On Capital Employed

Rollover

Rollover is the closing of an open bet and the opening of a new bet for the same amount. Typically this happen in futures styles bets as it allows you to transfer a trade that is near its expiry date to a new trade with a later expiry date. Rolling over is offered by spread betting providers to those clients whose financial positions are due to expire in the near future and want to roll them into the next contract month

S&P 500

Also known as the SPX500. Standard and Poor's American stock market index. The index of 500 of the largest companies on the official list of the New York Stock Exchange.

Scalping

'S&P' stands for Standard & Poor's (an international credit rating company). It defines the broader US equity market, tracking the performance of the top 500 US companies.

SEAQ

Stock Exchange Automated Quotations. The quote driven system for trading UK shares

Sector

Used to characterise a group of securities that are similar with respect to type and industry

Securities

The collective name given to stocks and shares

Sell or Sell Bet

Trading on a lower (bid) price because you think the market will fall. A bet that will be profitable if the price falls. Also called a Down Bet, Going Short or Taking a Short Position

SETS

Stock Electronic Trading Service. The order driven system used to trade FTSE 100, ex-FTSE 100 and reserve shares

Settlement Price

The price at which a bet is closed

Shares

Shares represent ownership of part of a company. They are also known as equities

Short/Short Selling

Trading on an expectation that you think the market will fall. A bet that will be profitable if the price falls. Also called a Down Bet, Going Short or Taking a Short Position

Shorting

Refers to selling an asset that you do not own with the aim of buying it back cheaper at a later date. In spread betting, it refers to placing a 'down bet' or a trade in anticipation of a falling market. To go short means to sell

Slippage

See Gap or Market Gap

SOQ
Special Opening Quotation. The settlement price mechanism for some US future contracts

Speculation

Taking an opinion on the change in the price of a security. Speculative trading carries a higher risk/reward ratio.

Spike

Sharp up or down movement in the value of a financial instrument

Spot market

Market in which commodities are bought and sold for cash and immediate delivery

Spread

The difference between the two prices quoted by a spread betting company i.e. The lower bid price and the higher offer price.In other words the difference beween the buyiing and selling price. Can also refer the variety of securities held in an investors portfolio in respect of how well the risk is spread within that portfolio.

Stake

The bet size per unit of movement. In Spread Betting this is NOT the total amount you could lose

Stop Loss

A pre-determined level at which a bet will be closed to limit your loss if the price moves against you. Stop losses are not always guaranteed and can be filled at worse levels than expected. This can occur when markets do not move smoothly. They "gap" from one price to another at times and your stop loss will be filled at the next print.

Stop Order

Stops are Orders to Sell below, or buy above, the current price. Stop orders are normally placed to close an existing position and restrict losses in the event of an adverse market movement. They can also be used to initiate a new position if the price breaks through a perceived support/resistance level

Strategy

Plan of action for achieving a goal

Support Level

A price level below which it is supposedly difficult for a security or market to fall. That is, the price level at which a market tends to stop falling because there is more demand than supply; can be identified on a technical basis by seeing where the stock has bottomed out in the past

Suspended Trading

Temporary halt in trading in a particular security, in advance of a major news announcement or to correct an imbalance of orders to buy and sell

Swing Trading

Trading where the instrument is bought or sold at or near the end of an up or down price movement to take advantage of it then moving in the opposite direction

Takeover

Acquiring control of a corporation by stock purchase or exchange

Target Price

Maximum retail price for a product under development. In the context of takeovers, the price at which an acquirer aims to buy a target firm. In the context of options, the price of the underlying security at which an option will become in the money. In the context of stocks, the price that someone hopes a stock will reach in a certain time period

Tax

Under current UK legislation, any capital gains made through financial spread betting is tax free

Technical Analysis

Analysis of a financial market by charting its performance, using historical patterns, and focusing on trends

Tic or Tick or Tick Size

The standardised minimum price movement of a spread bet

Time to Maturity

The time remaining until a financial contract expires

Trade Balance

Overall difference between a country's imports and exports

Trading Range

Range between the highest and lowest prices at which a stock is traded

Triple Witching Day

A day on which at least three types of derivative contracts, e.g. Stock Index Options, Stock Options and Stock Index Futures, expire. Also known as Freaky Friday, Triple Witching Days and often produces high volatility in the markets. Triple Witching Days are most common on the third Friday of March, June, September and December

Triple Witching Hour

The final hour of trading on Triple Witching Day

Underlying Instrument

In financial spread betting this relates to the currency, bond, share, commodity etc. on which the bet is based.

Unencumbered Funds

Funds that trading margin is not using i.e. available trading resources

Up Bet

A bet taken that the market will rise, to 'go long'. Also called a Buy or Going Long

Variation Margin

Same as Open Trade Equity (OTE) e.g. any running profit from an open position can be used as additional margin. Conversely, any running loss will need to be funded, especially if there is no stop loss in place

Volatility

Describes how quickly and how far the price of a financial instrument tends to move. An instrument which has a high volatility will tend to change price faster (both up and down) and further than one with a low volatility. In the context of financial spread betting this implies that high volatilty instruments tend to carry more risk.

Wall Street

Refers to the index of the top 30 US traded stocks otherwise known as teh Dow Jones Index

Warrant

A derivative product that is a certificate that authorises the holder to buy securities at a certain price. Warrants are like call options, but with much longer time spans, sometimes years

Watch List

A list of financial instruments selected for special surveillance with a view to potentially trading them.

Waived NTR

The Waived Notional Trading Requirement ("WNTR") will allow clients to open positions without placing funds or maintaining funds on deposit. The client can maintain and keep open all positions until expiry as long as the client remains within the WNTR limit and the credit allocation

Working Order

An order remains working until it is filled or deleted

Year End

End of accounting period when the books are closed out

Yearlings

12 month bonds issued most often by local authorities

Yield

The rate of return on an investment normally expressed as a percentage