Glossary

In our Glossary section you’ll find definitions for terms related to our services. Either browse the questions below or use the search to find answers on a specific topic.

ACCOUNT BALANCE

The total value of the account including the profit and loss and equity used to maintain any open position.

ADR

An ADR (American Depositary Receipt) is a negotiable certificate that represents a certain number of securities of a non-U.S. company that trades on a U.S. exchange.

ASK

The price at which it is possible to buy the base currency of the selected currency pair.

BASE CURRENCY

The currency written first in the currency pair, for example EURUSD where the EUR is the base currency.

BID

The price at which it is possible to sell the base currency of the selected currency pair.

CFD

Contract For Difference, a derivative financial instrument based on the price movements of an underlying contract.

CLOSED-OUT

Closure of an open position.

CREDIT CARD PAYMENTS ONLINE

Using the secure Personal Area, clients may fund their account using a credit or debit card.

DAY SPREADS

Spreads applied between 07:00 & 21:00 CET

DEMO ACCOUNT

Access to the MetaTrader platform to test the system and experience dummy trading.

DIRECT MARKET ACCESS

A trading system giving you access directly to the exchange on which an instrument is traded.

ECN ELECTRONIC COMMUNICATION NETWORK

A computer system facilitating the trading of financial instruments.

EXPERT ADVISOR EA

An algorithmic trading system trading automatically on your MetaTrader.

EXPIRY DATE

The date at which a CFD will no longer be tradable, and the new contract becomes available.

FINANCIAL CONDUCT AUTHORITY FCA

The United Kingdom regulatory body for financial services.

FINANCIAL OMBUDSMEN

The final arbitrator for any disputes with regulated companies in the financial markets.

FOREX

Abbreviation for Foreign Exchange, the markets and deals made within it.

FREE EQUITY

The amount of equity not used in holding open positions and therefore available to withdraw.

HEDGING

The trading practice of holding open long and short positions concurrently in the same instrument.

INSTANT ORDER

An order executed at a requested price, unless in volatile markets being returned with a requote. Or at a price within a designated acceptable maximum deviation.

INSTRUMENT

Any tradable financial product, a currency pair, CFD or commodity.

LEVERAGE

The multiplication factor of equity relative to the possible maximum position size.

LIMIT ORDER

A pending order used to close a trade when the market is moving profitably to the open position.

LIQUIDITY PROVIDERS

Banks or other market counterparts that support the underlying market with pricing.

LIVE ACCOUNT

An account giving live access and deal execution to the market.

LOT SIZE

The standardised contract value of an instrument.

MARGIN REQUIREMENT

The amount of equity required to hold an open position.

MARKET ORDER

An order which you instruct to be executed at the prevailing market rate, this could be possibly be different to your requested rate.

MARKET WATCH WINDOW

The window on your MetaTrader platform where you can view all the instruments available for trading.

MASTER ACCOUNT

The Master Account enables the asset manager to simultaneously place trades on all underlying Slave Accounts.

MAXIMUM DEVIATION

A user definable parameter used with instant orders allowing execution within a given tolerance of the actual requested price.

METATRADER

Market leading Forex and CFD trading platform with powerful technical toolbox and algorithmic trading capabilities using Expert Advisors (Eas).

METATRADER 4 ACCOUNT

Our FX trading account giving access directly to our liquidity providers’ quotes.

MICRO LOT

Common name for 1/100th (0.01) of a lot.

MINI LOT

Common name for 1/10th (0.1) of a lot.

MOBILE DEALING

Trading on Smartphones, PDAs and other portable devices.

NO DEALING DESK

Trading execution without intervention by human dealers.

OPEN POSITION

A trade in the market which has not yet been closed.

ORDER

Any instruction to trade as either a market order or pending order.

PARTIAL CLOSURE

When part of a position is closed which is not the full amount of the originally opened position.

PENDING ORDER

An order sent to MetaTrader for execution at a later time or market level.

PERSONAL AREA

Secure communications portal for ActivTrades clients.

PIPS

The smallest increment movement of a financial markets instrument.

PROFIT/LOSS

The proceeds of a winning or losing trade.

REGULATION

The law issued by the regulator governing the fairness of our business.

ROLLOVER

Also known as swaps, the daily interest adjustment applied to open FOREX positions when held after midnight Central European Time.

SCALPING

The practice of short term or high frequency trading often on small market movements.

SLAVE ACCOUNT

A Slave Account is the client’s individual trading account which is being managed by the asset manager via the Master Account.

SLIPPAGE

The difference in pips when an order is executed outside of the requested rate.

SPREAD

The difference in pips between the bid and offer prices.

STOP & LIMIT LEVEL

The distance in pips from the current market price as to the nearest level it is possible to place a pending order.

STOP ORDER

A pending order used to close a trade when the market is moving adversely to the open position.

SWAP

Also known as rollover, the daily interest adjustment applied to open FOREX positions when held after midnight Central European Time.

TAKE PROFIT

An order which closes a position at a profit.

TRADE

A deal made in the market.

TRADEOUT

Automatic closure of a position should the account equity fall below the Tradeout Level.

TRADEOUT LEVEL

The percentage level of equity required as an absolute minimum to maintain an open position.

TREATING CUSTOMERS FAIRLY TCF

A directive from the regulator ensuring fair treatment of clients.

UNDERLYING CONTRACT

The contract on which any CFD price is based.

VARIABLE SPREADS

Prices set with a target minimum spread but with the possibility to vary according to market conditions.

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