| Basis of
Expiry : The E*TRADE Spread Betting specification
of the price at which a contract (bet) expires.
Bid : The price at which Capital
Spreads buys and therefore at which a customer can
sell the contract (bet) quoted.
Buy : (‘Take’, ‘go
long’) means you make an up bet (or close a
down bet).
E*TRADE Spread Betting Market Hours:
The times at which E*TRADE Spread Betting will quote
on a given contract.
CGSL : Computer Generated Stop Loss
- This is the maximum figure used to automatically
allocate a Stop-Loss on newly opened positions. In
the event that a client has sufficient funds to cover
the CGSL on deposit, the Trading System will assign
a stop at a point 80% of the CGSL away from the opening
price of the trade. Otherwise, the system will allocate
a stop according to funds available in your account.
Contract Month : The month during
which a futures contract expires, and during which
delivery may take place according to the terms of
the contract.
Down Bet : ( Sell Give Go
Short ) If you think the market will fall, you would
place a Down Bet.
Expiry : The date and time on which
the relevant bet expires.
Futures : A standardised, transferable,
exchange-traded contract that expires on a specified
future date.
Gapping: This is the term used to
express the situation where any market moves directly
from one correctly quoted price to another, significantly
different, correctly quoted price. There can be many
reasons for gapping; economic figures, company announcements,
political events, natural disaster etc., but the effect
is that any stop-loss, limit or new order will be
subject to a gap in the price. One of the main reasons
for gapping a spread bet is a movement in the underlying
market price overnight, during which time E*TRADE Spread Betting does not quote a price.
Gearing (or Leverage): This term
refers to the fact that spread betting allows the
client to buy (or sell) a financial product with substantially
less money than the actual full market value of that
financial product. So gearing is the correlation between
potential profit or loss against initial deposit.
A highly geared or leveraged bet involves substantial
risk to your money (but also gives the possibility
of high returns) At E*TRADE Spread Betting the initial
deposit is normally at least the IMR.
GFD - Good For the Day : An order
valid for the day of placement only.
GTC - Good Till Cancelled : An order
valid until either cancelled or until the underlying
contract has expired .
Hedging : The action of reducing
the risk of an outright position in one Market by
taking an opposite position in a similar or derivative
market, e.g. if you had an up bet in the FTSE you
might enter a down bet in the DAX. In this case although
the Hedge would not be exact, it is unlikely that
the FTSE will move heavily in the opposite direction
to the DAX (but, of course, not impossible).
IMR: Initial margin requirement
Last Dealing Day : The last day
in the contract month on which a customer may deal
in the product.(May be a significant difference to
the Expiry).
Liquidity : The ability of an asset
to be converted into cash quickly, without any price
discount and any restriction to size of transaction.
Limit Order : An optional order
against and existing position to either sell above
the current market level or buy below that level at
a price specified by you, that will take profits.
Long : means you have an up bet
.
Margin : Clients who hold open positions
require what is called margin. Margin is calculated
as the amount of money you must have in your account
to satisfy E*TRADE Spread Betting that you are able
to honour your debt should your bet lose money.
Maximum CGSL(Computer Generated Stop Loss):
This is the maximum figure used to automatically allocate
a Stop-Loss on newly opened positions. If you have
sufficient funds to cover the CGSL on deposit, the
Trading System will assign a stop at a point 80% of
the funds on your account, up to the CGSL. Otherwise,
the system will allocate a stop-loss calculated as
80% of the funds available in your account. For example,
if you have £2000 in your account and you trade
the Daily FTSE at £10 per point, the system
will automatically allocate a stop-loss of 100 points
(because the Max CGSL for Daily FTSE is 125 and 80%
of 125 is 100). The maximum risk on a £10 bet
would therefore be £1000, even if you have £2000
on your account. You can always amend your stop-loss
(move it further away, or bring it closer) assuming
you have sufficient funds on your account. If you
require more information, please contact us.
Minimum Bet : The minimum bet in
pounds ( euros/dollars) per point that we will accept
in that contract.
Minimum IMR: The Min IMR refers
to the Minimum Initial Margin Requirement. It is a
way of calculating the minimum funds required to open
a new position. If the Min IMR on a market is 50 and
you wished to make a bet £5/point, you would
require a minimum of £250 in your account to
open a new position. We will then generate a stop-loss
that reflects 80% of the funds available on your account
or 80% of the Max CGSL, (see details below). You can
adjust/amend your stop-loss to whatever level you
desire (subject to the funds on your account). Every
product has a minimum stop level that limits how close
you may place any stop.
New Order: An order to open a new
bet at a level in the market which has not yet been
reached. It is not attached to any existing bet and
is independent of any other instruction
OCO : ‘One Cancels Other’
a market term where you have two orders, one above
and one below, the current market price and where
the first to be executed automatically cancels the
other.
Offer : The price at which Capital
Spreads sells and therefore at which a customer (you)
can buy.
Per Point/pip/tick : A term used
to clarify the bets placed. For instance, a bet per
point on Vodafone is for each penny movement in the
E*TRADE Spread Betting Vodafone share price. A bet
per point on the FTSE is for each point move in the
relevant E*TRADE Spread Betting FTSE contract. E.G.
a 10 point movement from 5100 to 5110 on a E*TRADE Spread Betting Daily FTSE contract would therefore
correspond to a win or loss of £100 per £10
placed as a bet. Tick is usually used for futures
contracts with a base of 100 such as Short Sterling
or Bunds. Pip is used in FX trades. All these terms
are applied to refer to the unit movement required
to alter the profit/loss on your bet by the full stake
amount.
Rollover : Rolling over is the practise
where a position that is due to expire is closed and
transferred into the next monthly contract. We will
allow clients to roll positions from the expiring
contract to the next contract for a reduced spread.
For futures contracts, the original bet is closed
(and becomes due for settlement) and a new bet is
established.
Sell : (‘Give’, ‘go
short’) means you make a down bet (or close
an up bet).
Settlement price : The price at
which E*TRADE Spread Betting settles a position at
expiry date. The basis of settlement for each contract
can normally be found in the E*TRADE Spread Betting
Product Information Sheets.
Spot : For immediate delivery.
Spread : The difference between
the buy and sell sides of our quote.
Stop Order : A mandatory order to
either buy above the current market level or sell
below that level at a price specified by you.
Tick : The standard term for the
smallest price movement in a contract.
Underlying Markets : Our quote is
always based upon the prices received from the various
financial exchanges around the world. These prices
are the 'underlying markets'.
Up Bet : ( Buy Take Go Long
) If you think the market will rise, you would place
an Up Bet.
Volatility : A term to describe,
and quantify, the relative movement of a given market
in the recent past. A market that moves a great deal
is said to be of high volatility and one that is quiet
is said to have low volatility. |
