A theory which says that as a futures contract nears expiry, it will trade at a higher price compared to when it was further from the expiry date. Also see 'Contango'.
The first currency quoted in a currency pair (for example in the GBP/USD currency pair, GBP is the base currency while USD is the quote currency).
The lending rate determined by the central bank of a given country.
Typically one hundredth of 1%, for example an interest rate cut of 50 basis points is equal to 0.5%.
A market distinguished by falling prices and negative sentiment.
The highest price a buyer is willing to pay for a product is referred to as the ‘bid’. Also see Ask and Offer.
The price at which the buyer is willing to purchase at.
The difference between the buying price (offer/ask) and selling price (bid) of a product.
Blue-chip companies are usually well-established, financially sound and better able to weather downturns. As a result, blue-chip stocks are regarded as less volatile. Companies listed in a country’s top tier stock index, such as the UK’s FTSE 100, are considered blue-chips.
A chart indicator used in technical analysis to measure market volatility, consisting of a single moving average and two standard deviation bands.
Trading strategies that recommend entering spread bets or CFD trades once the price breaks through a defined resistance or support level. New ‘buy’ positions are entered into when the price breaks through a resistance level, while new ‘sell’ positions are entered into when the price breaks through a support level. These strategies are based on the view that once the price breaks through a support or resistance level, a new trend is likely to begin.
An individual or firm acting as an intermediary to bring together buyers and sellers, typically usually for a small commission or fee.
A market distinguished by rising prices. Bullish investors have a positive opinion about a market, believing that prices will continue to rise.
Precious metals such as gold, silver, platinum or palladium in the form of bars or ingots.
Central bank of Germany.
Buy limit order
A conditional trading order that indicates a security may be purchased only at the designated price or lower. Also see Take-profit order.
A position in the market that would profit from a rising market price, or make a loss should prices fall.
Buy stop- entry order
When you buy a security that is entered at a price above the current offer price. It is triggered when the market price touches or goes through the specified stop price.