CFD Glossary

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Key CFD Trading Terms

Leverage: A tool that allows you to gain larger exposure to the financial markets with a relatively small initial deposit (margin).

Margin: The deposit required to open and maintain a leveraged trading position.

Spread: The difference between the buy (ask) price and the sell (bid) price of an asset.

Pip (Percentage in Point): The smallest price move that a given exchange rate makes, usually the fourth decimal place.