CFD
A contract for difference is a leveraged derivative that tracks the price movement of an underlying market without requiring ownership of that underlying asset.
GLOSSARY
Plain-language trading terms.
Definitions designed to reduce jargon, not to make high-risk products sound simple.
Leverage
A mechanism that lets a trader control a larger notional exposure with a smaller amount of margin. It magnifies both gains and losses.
Margin
The amount of capital required to open or maintain a leveraged position.
Spread
The difference between the quoted bid and ask prices. It is one component of trading cost.
Pip
A conventional unit used to express small price movements in many foreign-exchange pairs.
Lot
A standardized position-size convention. In spot FX, one standard lot is commonly 100,000 units of the base currency.
Stop Loss
An order intended to close a position after price reaches a specified level. Execution price can differ in fast or gapping markets.
Take Profit
An order intended to close a position when a specified favorable price level is reached.
Slippage
The difference between an expected execution price and the price at which an order is actually filled.
Copy trading
A system that can replicate another strategy provider’s trades in a follower account. Performance is not guaranteed and losses can be copied too.
Introducing Broker (IB)
A commercial partner who introduces prospective clients to a financial-services provider under a partner agreement. Local promotion rules may apply.
KYC
Know Your Customer procedures used to identify and verify clients and assess financial-crime risk.
Regulation and availability
Official risk warning ↗
CFDs and leveraged trading can lead to substantial losses. Never treat photographs or marketing claims as evidence of safety. Local authorisation has not been verified here. Check the relevant regulator and the provider directly.