Bid-Ask Spread
The bid-ask spread is the difference between the bid (sell) price and the ask (buy) price of an asset.
Borrow Charge
This charge compensates the broker for the cost of borrowing the underlying shares to facilitate your short sale and can vary based on the stock’s availability and demand.
Calendar Spreads
Involves simultaneously buying one futures CFD contract month and selling another for the same commodity.
Commissions
A charge per trade, often calculated as a percentage of the trade’s total value or a fixed amount per share/contract.
Contract For Difference (Cfd)
A Contract for Difference (CFD) is a derivative financial instrument that allows traders to speculate on the price movements of underlying assets without actually owning them.
Corporate Action
An event initiated by a publicly traded company that brings material change to the organization and impacts its stakeholders, including shareholders and bondholders.
Crypto Cfds
Crypto CFDs are derivative instruments that allow traders to speculate on the price movements of cryptocurrencies without actually owning the underlying digital asset.
Demo Account
A demo account allows traders to practice trading with virtual funds, familiarize themselves with the platform’s functionalities, and test strategies without financial risk.
Derivatives
Derivatives are instruments whose value is derived from an underlying asset.
Dividend Adjustments
Mechanisms implemented by CFD brokers to neutralize the impact of the stock price drop on the ex-dividend date, ensuring fair value and preventing artificial gains or losses.