Trader's Glossary


A financial instrument with no intrinsic value in and of itself, which derives its value from another financial instrument, asset, index or exchange rate. Contracts for difference, options, swaps, forwards and futures are all examples of derivatives.
Did you know?

Papyri PCZ I 59021, which dates back to 259/8 B.C., shows the exchange of coinage in ancient Egypt.

Word of the day
"Risk/Reward (R/R)" - A ratio that compares the expected returns of an investment to the amount of risk that an investor undertakes.
Pro Tip

Most market activity occurs when at least two market centres are open at the same time.