A range of techniques that use past price charts, along with other indicators, to anticipate future price movements.
Selling a buy position or buying back a sell position, which closes the position, so that you no longer have any exposure to changes in the market price.
An equal and opposite transaction (for instance buying 1000 BT shares then selling 1000 BT shares) which results in the position automatically being closed.
The closing price is the last price for a tradable instrument at the time the market closes.
A fee charged by a broker or agent for carrying out transactions/orders.
A physical good, such as food, metal or fuel, that is interchangeable with other commodities of the same type. The quality of a commodity may differ slightly, but it is basically uniform across all producers, as any commodities that are traded on an exchange must meet specific minimum standards. A commodity is any basic good that investors can ‘buy’ or ‘sell’. Some popular commodities include: crude oil, coffee, gold, natural gas, silver, corn, sugar, cotton and wheat.
Consumer Price Index (CPI)
An index that measures changes in the price of goods and services purchased by consumers. The figure measures the average change over time in the price of a sample of various common goods and services purchased by typical urban households.
Contract (unit or lot)
The standard trading unit on certain exchanges. For stock index, forex and commodity positions, it is the amount of base currency profit or loss per point movement in the market.
Contract for difference (CFD)
Contracts for difference (CFDs) are derivative products which enable you to trade on the price movement of underlying financial assets (such as indices, shares and commodities). A CFD is an agreement to exchange the difference in the value of an asset from the time the contract is opened until the time at which it is closed. With a CFD, you never actually own the asset or instrument you have chosen to trade, but you can still benefit if the market moves in your favour.
A position which has a strictly limited maximum loss by virtue of a guaranteed stop. Also see Limited risk.