Clear definitions of the terms professional traders use every day.
A derivative that allows you to speculate on the price movement of an asset without owning it. You profit from the difference between the opening and closing price.
The difference between the bid (sell) and ask (buy) price. This is the main cost of trading for many CFD accounts.
The ability to control a larger position with a smaller amount of capital. Higher leverage increases both potential gains and losses.
The amount of capital required to open and maintain a leveraged position.
The interest paid or received when holding a position overnight.
A bank or institution that supplies buy and sell prices to brokers. Better LPs generally mean tighter spreads and more reliable execution.
A regulatory protection that ensures a client cannot lose more money than they have deposited in their account.
A client who meets certain experience, portfolio size, or trading volume criteria and can request higher leverage and lighter regulatory protections in exchange.