Glossary

The simultaneous purchase and sale of two different, but closely related, securities to take advantage of a disparity in their prices.

The price at which you can buy. It is the higher of the two prices quoted. Also referred to as ‘Offer’.

This occurs when the bid price exceeds the offer price for a stock. This is a market distortion and usually will correct itself quickly.

A market characterized based on declining prices.

This is the price at which you can sell. It is the lower of the two prices quoted.

A long-term debt security with a stated interest rate and fixed due dates, issued by a corporation or a government, when interest and principal must be paid. There are many variations.

A market characterized on rising prices.

A commonly used term to describe the exchange rate between British pound sterling and the U.S. dollar.

Contract For Difference.

These are markets where raw or primary products are exchanged (like gold and oil). These commodities are traded on regulated exchanges, in which they are bought and sold in standardised contract sizes. We quote prices derived from the underlying futures markets of the relevant contracts.

Consumer Price Index.

A security whose price is derived from an underlying asset (e.g. a share, currency, commodity or index) and may not give the holder any actual rights to the underlying asset.

European Central Bank.

Also known as shares or stocks. Equities represent a share ownership in a company.

The date and time on which the relevant contract expires. Once this time has passed you are no longer able trade this market and your position will be closed at the settlement price.

The price at which contracts are settled when left to expire.

Price at which theoretical future contracts should be trading above or below the leading future contract. Fair values for stock indices are determined by differentials in interest rates and dividend payments.

Rapid trading in a specific security that causes a delay in its electronic updating.

The FCA is an independent body that regulates the financial services industry in the UK. City Credit Capital(CCC) is an FCA regulated company. This means you can trade safely and securely, knowing your money is protected by some of the toughest financial regulations in the world.

First In, First Out. The order in which trades will be closed unless otherwise specified.

The execution of an order.

A futures contract is an agreement to conduct a transaction at some specified time in the future where the price is agreed now. Therefore, it means that the expiry date is at some point in the future. Our future contracts are cash settled so you will never be required to actually deliver, or take delivery of, the physical product.

Also known as Currency or Forex. FX markets trade one state or economic bloc’s currency against another’s ( known as a cross rate ). You trade the first currency pair against the other. (i.e GBP/USD is Sterling against US Dollar. If you buy this pair you are anticipating that the Sterling will rally against the US Dollar).

Where the market trades through a level specified by the client in an order. Market gaps are common during times of volatility.

Good Till Cancelled. An order to buy or sell a market that remains active until the order is executed or is cancelled.

Good For the Day. An order to buy or sell a market at a set price that is active until the close of business on the day the order is placed or until the order has been filled.

The action of reducing the risk on a position in one market by taking an opposing position in a similar or derivative market.

International Monetary Market.

A futures contract on an index in the futures market.

The plural for Index. Indices are a customised basket of securities that track a particular market or segment.

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

London Interbank Offered Rate.

An order to either sell above the current market level or buy below that level at a price specified by you. You can get filled at a better level than you set. You cannot get filled at a worse level than you set.

Price change down a product is allowed to make during one day of trading.

Price change up a product is allowed to make during one day of trading.

An open buy position.

The amount of funds used to maintain an open position. Also known as margined trading.

A call from your broker for further funds to be deposited in the account to support additional exposure from running losses. In lieu of physical margin calls, this term is now used to refer to the auto closing of your positions when funds are no longer available to maintain them.

Also known as MT4, is an electronic trading platform widely used by online retail foreign exchange speculative traders. The software is licensed to foreign exchange brokers who provide the software to their clients.

Normal Market Size.

One Cancels Other. Where you have two orders which ,when one executes, automatically cancels the other.

The price at which you can buy. It is the higher of the two prices quoted. Also referred to as ‘Ask’.

An instruction to make a trade at a price that is not currently available in the market.

The price at which we settle a position at expiry date. The basis of settlement for each contract can be found in the Market Information Sheets.

An open sell position.

The difference between the expected price of a trade, and the price the trade actually executes at.

Immediate delivery.

The difference between the buy and sell sides of our quote.

An order to either buy above the current market level or sell below that level at a price specified by you. You can get filled at a worse level than you set.

Also known as pip. The smallest incremental move/price movement in a contract.

A term to describe and quantify the relative movement of a given market in the recent past. A market that moves a great deal is said to be volatile.