A market capitalisation weighted index of the top 500 companies listed in the New York stock exchange (NYSE) or the NASDAQ. Often used as a gauge of sentiment for the US market.
A trading strategy that involves placing short-term trades, sometimes less than a minute long, usually to try and capture small price movements.
A distinct subset of a market whose components share similar characteristics. Stocks are often grouped into different sectors depending upon the company's business. For example the FTSE 100 has banking, oil & gas and pharmaceutical sectors.
Sell limit / limit sell
A conditional trading order that indicates an instrument may be sold only at the designated price or higher.
An order to open a sell position at a price lower than the price at the moment of placing the order. It is subject to price depth ladder and can be slipped to the current market price.
This is practice of selling shares that you do not own in the hope that the share price falls before you have to settle the contract. If the price does fall you can then buy the shares at the lower price and pocket the difference. Also see Shorting.
The process of a position closing against a specified market level once the position has gone beyond its last dealing time. Also see Expiry.
A form of trading where the initial transaction is to sell, for example a CFD position taken in anticipation of a falling market. The position is closed with a buy trade. The trader will profit if the price falls and lose if it rises. When trading FX it refers to selling the base currency against the quote currency.
The difference between the requested level of an order and the actual price at which it was executed. Slippage can occur during periods of higher volatility when market prices move rapidly or gap. Also see Fill and Gapping.
The price quoted for immediate settlement or delivery of a currency, index, commodity or share (that is payment for and delivery of a product). It’s the current price at which a commodity or currency can be bought or sold at that specific time.