Glossary
CFD – contract for difference.
A financial instrument that enables you to profit from the price movements of securities without actually owning the underlying security
DIVERSIFICATION
Spreading your money out over many different investments to lower portfolio risk
ETF – exchange-traded fund.
A type of investment fund that aims to track the performance of a specific stock market index or asset.
FUNDAMENTAL ANALYSIS
A form of analysis that focuses on information such as economic developments and data
GOING LONG
Buying a security
GOING SHORT
Selling a security
INDICES
The plural form of index
INVESTOR SENTIMENT
The general mood of investors
LEVERAGE
Using capital borrowed from a broker when opening a position to increase the potential return of an investment
MARKET CAPITALISATION
The total value of a company’s shares
MARKET RISK
The risk that the underlying index or asset falls in value.
MUTUAL FUND
An investment fund that pools money together from many individual investors to purchase securities
RISK
The amount of capital exposed on any single trade
RISK MANAGEMENT
Focusing on risk when trading in order to minimise losses
SPREAD
The difference between the buy and the sell price. This is also the cost of placing the trade
STOCK INDEX
An index that measures the performance of a particular group of stocks over time
TECHNICAL ANALYSIS
Aform of analysis that focuses on price charts, trends, and patterns
VOLATILITY
Up and down movements in the price of a security
Reprinted from eToro, the copyright all reserved by the original author.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.