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CFD Glossary of Terms

Welcome to our CFD glossary/dictionary/encyclopedia, where we supply a comprehensive list of terms, phrases, events, words and people that have bearing or influence on the world stock markets, both past and present. We add new definitions on a regular basis, so please do revisit for more definitions relative to CFD's. Our aim is to make this CFD glossary as comprehensive as possible over time.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

After hours Times that fall outside of standard dealing times. Although markets have fixed guaranteed dealing times, certain issues can be traded outside of these times. We have supplied the known trading hours for the major world exchanges below. All times are quoted as GMT (UTC 0) and some are subject to daylight savings time.
At Best An order to deal at the best buying or selling price available in the market at the time. Also known as ‘at market’
At market An order to deal at the best buying or selling price available in the market at the time
At the money An order to deal at the best buying or selling price available in the market at the time

Bear market Bear market describes a continuous downward slide in stock prices. This is to be seen as a holistic tendency, where all major sectors tend to be in a downward trend.
Bull market A bull market is associated where there is increasing investor confidence in the stock market, which in turn has a positive effect to encourage more investment which in turn motivates more investment in the markets in anticipation of higher future prices.

CREST clearance system CrestCo Ltd. is the central securities depository for the U.K. markets and Irish stocks. More specifically, Crest operates an electronic settlement system, which was established in 1996 and is used to settle a vast number of international securities.
CFD A CFD is an agreement between a broker or marketmaker and an investor to pay the difference between the opening and closing price of a contract.

FTSE 100 index The FTSE 100 index, or footsie, is a share index of the top 100 most highly capitalised UK companies listed on the London Stock Exchange (LSE).

OTC (Over-the-counter) Not listed or available on an officially recognized stock exchange but traded in direct negotiation between buyers and sellers: over-the-counter stocks. Market in which securities transactions are conducted through a telephone and computer network connecting dealers in stocks and bonds, rather than on the floor of an exchange.
Oversold Where a share or market has fallen to a level deemed by some traders or investors to represent a buying opportunity. Many technical indicators have pre-set levels which if hit represent oversold levels.
Overbought Where a share or market has risen to a level deemed by some traders or investors to represent a selling opportunity. Many technical indicators have pre-set levels which if hit represent overbought levels. The opposite of oversold.

Stamp duty (UK) A tax collected by requiring a stamp to be purchased and attached (usually on documents or publications). The more modern versions of the tax no longer require a physical stamp.

TAURUS share trading system Taurus was a program that set out to transfer the London Stock Exchange from paper communication to an automated system.

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Securities and Derivatives markets may be subject to rapid and unexpected price movements and past performance is not necessarily a guide to future performance. Trading in these markets is generally considered to be suitable only for the more experienced investor as it carries a high degree of risk. An investor may not receive back the amount of their original investment and in certain circumstances may be liable for a sum that is greater than their original investment. If in any doubt, please seek independent financial advice.