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Trading Glossary

Take a look at our list of the financial terms associated with trading and the markets. From beginners starting their trading journey to experts with decades of experience, all traders need to clearly understand a huge number of terms.

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Cocoa

Cocoa is a “soft” commodity - referring to those that are grown rather than mined - and comes from the Theobroma tree, whose name translates as “God food” in Greek. Cocoa beans are primarily used to produce chocolate, cocoa powder and cocoa butter, the latter of which is widely-used in beauty products.

Cocoa is priced in USD per metric tonne. The highest price for cocoa on record is $4,361.58/MT, which was reached in July 1977. Cocoa traded at its lowest recorded level of $211/MT in July 1965.

West Africa accounts for around 70% of the global market supply, while Cote d'lvoire, Ghana and Indonesia are the top three cocoa producers. Latin America is a key market player as well.

As a “soft” commodity, cocoa prices are heavily affected by weather and climate news - adverse conditions could affect harvests.

Cocoa futures allow you to speculate on, or hedge against, changes in the price of cocoa. Futures rollover on the first Friday of February, April, June, August, and November.

Account Balance

What is an account balance in trading?

A trader's "account balance" is the total value of the account including all and any settled profit & loss, deposits, and withdrawals. 

How do I check my trading account balance?
As mentioned, your account balance is the total sum of settled positions, P&L, deposits, and withdrawals. Yet this balance does not include profit or loss resulting from any open positions. If positions are indeed open, the balance might change depending on pending losses or profits until such positions are closed. As such, it is recommended to check your trading account balance regularly as new positions open and close on a regular basis.

Economic Calendar

What is an Economic Calendar?

An economic calendar is a schedule of dates when significant news releases or events are expected, which may affect the global or local financial markets volatility as well as currency exchange rates. Traders and all functions involved in the markets and financial issues make use of the economic calendar to follow up and prepare on what is going to happen, where and when.
 
Due to the impact of financial events and announcements, on exchange rates, the forex market is highly affected by monetary and fiscal policy announcements. As such, traders make use the economic calendar to plan ahead on their positions and trades and to be aware of any issues that may affect them.

What is Financial Market volatility? 
Financial Market volatility is the degree of variation of a trading price series over time. Many traders will consider the historic volatility of a stock. This is the fluctuations of price in a given time frame. Historic volatility creates forward looking implied volatility. This allows us to predict price variation in the future.

Volatility

What is Volatility?

Volatility is the amount of uncertainty or risk associated with the size of changes in a security's value. It is measured by calculating the standard deviation of returns over a given period. High volatility means the price of an asset can change dramatically over a short time period in either direction. Traders often take advantage of volatility by speculating on stocks, options, and other financial instruments.

What causes market volatility?
Market volatility can be caused by a variety of factors including economic data releases, political events, changes in interest rates, and unexpected news or events. It can also be caused by changes in investor sentiment, speculation and market manipulation.

How do you know if a market is volatile?
A market is considered volatile if prices change rapidly, unpredictably, and significantly. This can be measured using volatility indices or by analyzing price movements and fluctuations over time.

Commodities

What is a Commodity?

commodity is a raw material asset such as oil, gas, gold, or wheat. Commodities can be categorised into either hard commodities or soft commodities. 

What are Soft Commodities?
Soft commodities typically refer to raw materials that are grown rather than mined such as coffee beans or sugar. 

What Are Hard Commodities?
Whereas hard commodities must be extracted such as natural gas or crude oil. 

A commodity is often exchangeable for other commodities of the same type and can be purchased through either the spot market using cash, or through derivatives like futures.

Cardano

Cardano differs from other cryptos by taking a research-led, collaborative approach to cryptos. Traders of its ADA currency help operate the network and can vote on software changes. Cardano is priced in USD and the instrument allows you to trade the ADA/USD spot rate.

Compound

Compound cryptocurrency is all about supply and demand. Its protocol, based on Ethereum blockchain, creates money markets with interests algorithmically derived from supply and demand levels. Users can earn or pay a floating interest rate without need for negotiating with other parties. Compound is priced in USD and tradeable through the COMP/USD symbol.

Polkadot

Polkadot (DOT) fuses two blockchains: the main, relay chain, where transactions are permanently agreed upon, and user-generated chains. Tradeable in USD, Polkadot is priced in USD and uses the DOT/USD spot rate.

CAD/CHF

CAD/CHF is the abbreviation for the Canadian dollar to Swiss franc exchange rate. US$260 billion worth of Canadian dollars and US$243 billion worth of francs is traded each day. The Canadian dollar is the 6th most-traded currency, and makes up one side in 5.1% of all daily trades. The Swiss franc is the 7th most-popular trading currency in the world and is involved in nearly 5% of all forex transactions each day.

The pair is sensitive to changes in market risk appetite, as the Canadian dollar is a commodity-correlated currency and the franc is a safe-haven currency.

The producing and exporting of crude oil is vital to the Canadian economy, so changes in price can push CAD/CHF higher or lower. Oil is sensitive to changes in risk appetite, creating further volatility for the Canadian dollar.

Compounding the effect of market uncertainty upon CAD/CHF is the Swiss franc's reputation as a safe-haven, thanks to Switzerland's strong economy and developed financial sector.

CAD/JPY

The Canadian dollar to Japanese yen exchange rate is identified by the abbreviation CAD/JPY. The Canadian dollar is the 6th most-popular currency, making up one side in 5.1% of daily trades. The Japanese yen is the 3rd most-traded currency, accounting for 22%.

The pair is highly sensitive to changes in market risk-appetite, as the Canadian dollar is a commodity-correlated currency and the Japanese yen is a safe-haven currency.

The Canadian dollar is highly sensitive to changes in the price of crude oil - Canada's primary export. In turn, crude prices often respond to market appetite for risk, so the strength of the CAD/JPY exchange rate is largely dictated by whether traders are feeling optimistic or pessimistic over global conditions.

In times of market uncertainty, appetite for the safe-haven Japanese yen can increase sharply. However, the yen is often softened by the Bank of Japan's ultra-loose monetary stimulus package, which includes quantitative easing and negative interest rates.

Coffee

Coffee is a “soft” commodity - referring to those that are grown rather than mined. It is the world's second-most popular commodity, behind only crude oil. The market is worth around $100 billion.

Over 50 countries worldwide grow coffee, with around two-thirds of the global supply produced in the Americas. Brazil, Vietnam, and Colombia are the three largest producers.

Coffee is priced in USD per lb. It hit a record high of $339.86/lb during April 1977, while the lowest price on record is $42.50/lb in October 2001.

Coffee is a highly-traded commodity that is often bought by speculators, so risk appetite has a strong effect on prices. Around half of the coffee produced on the globe is bought by just four companies: Kraft, P&G, Sara Lee, and Nestle, so changes in the fortunes of these companies can also impact prices.

Coffee futures allow you to speculate on, or hedge against, changes in the price of coffee. Futures rollover on the second Friday of February, April, June, August, and November.

Copper

Copper is found in ore deposits around the world and top producers include Chile, China, Peru and the US. It was the first metal to be used by humans and remains essential for a variety of uses: it is the world's third most widely used metal, after iron and aluminium.

Copper is priced in USD per lb. it's all-time high was $4.58, which it reached in February 2011. Copper hit a record low of $1.94 in January 2016.

Like silver and gold, it is malleable and a good conductor of electricity, however it is also relatively inexpensive which makes it ideal for industrial applications such as wiring, plumbing and circuitry.

The price of copper is influenced by a number of factors including the strength of the US Dollar, demand from China and extraction costs. However, the energy-intensive refining process mean it is also susceptible to changes in oil prices.

Instability in the political climate of key countries where copper is mined can also affect the price.

Corn

Corn is a soft commodity - referring to those that are grown rather than mined - and is valued for its versatility. As well as being a dietary staple it has many other uses, from biofuels to animal feed.

Corn is grown in every continent on the globe with the exception on Antarctica. 40% of global corn supplies are produced in the US, while China, Brazil, the EU, and Argentina are also major players.

Corn is priced in USD per bushel. In August 2012 corn struck a record high of $849, while the lowest price ever recorded was $22.90 in November 1932.

As corn is a soft commodity, prices are vulnerable to weather conditions which can affect harvests. The strength of emerging market economies also affects prices, as demand for meat products rises as incomes rise, and much of the corn produced each year is used for animal feed.

Corn futures allow you to speculate on, or hedge against, changes in the price of corn. Futures rollover on the fourth Friday of February, April, June, and November.

Cotton

Cotton is a “soft” commodity - meaning it is grown and not mined - and has for thousands of years been one of the most important crops. Its lightweight and absorbent fibres mean that cotton is the most popular natural fibre on the planet.

China, India, and the US are the top producers of cotton in the world; in the US cotton primarily comes from Florida, Mississippi, California, Texas, and Arizona.

The fibre is priced in USD per lb. It reached a record high price of $210.64 during March 2011 and struck a record low of $5.66 during December 1930.

As well as weather conditions, cotton prices are heavily influenced by demand for competing synthetic fibres and changes in government policy. Cotton farmers enjoy heavy subsidies in the US, so a change here could have significant consequences.

Cotton futures allow you to speculate on, or hedge against, changes in the price of cotton. Futures rollover on the third Friday of February, April, June, and November.

Exchange

What is an Exchange?

An exchange, market or stock exchange is a marketplace where commodities, securities, derivatives, stocks and other financial instruments are traded. The core function of an exchange is to provide for organized trading and efficient distribution of market & stock information within the exchange. Exchanges provide their users the necessary platform from which to trade.

Why should you trade on an exchange?
Trading on an exchange offers security, reliability, liquidity and low costs. Exchange-regulated markets provide transparency, where all market participants have the same access to prices and trading information. Exchanges also offer robust risk management and safety protocols to protect against any price manipulation or abuse of the system.

What are types of exchange?
There are three main types of trading exchanges: traditional exchanges, dark pools, and electronic communication networks (ECNs). Traditional exchanges provide an organized marketplace to buy and sell securities while dark pools facilitate large orders in private forums. ECNs allow investors to directly access liquidity pools and execute trades with other participants in the market.

Risks associated with CFDs

What are the risks associated with CFD and Forex trading?

CFDs are a leveraged financial instrument that allow traders to gain exposure to an underlying asset, such as shares, commodities or indices. While this provides great potential for profits, it also carries significant risks. The main risk is the possibility of losses greater than your initial deposit if the market moves against you. CFDs also have costs associated with trading such as commissions and spreads. Make sure you understand the risks before trading with CFDs.

What are the disadvantages of CFDs?
CFDs are complex instruments and may not be suitable for everyone due to the risk of leverage. CFDs also come with costs, including spreads and commissions which can cut into potential profits. Furthermore, it's important to understand how margin calls work as well as potential losses from unanticipated price movements or illiquidity in the market.


How much can you lose in a CFD trade?
In a CFD trade, you can potentially lose more than your initial investment, as the loss is based on the difference between the entry and exit price of the trade. It is important to set stop loss orders to limit potential losses. Additionally, using proper risk management strategies can help to minimize losses.

 

Chainlink (LINK)

Chainlink (LINK) connects contracts smartly by linking them with real world events, data, and payments. Using the LINK cryptocurrency, Chainlink is tradeable on our platform via the LINK/USD instrument.

China 50

The FTSE China A50 index, also known as the China 50, is a Chinese benchmark index that allows investors to trade A Shares, which are securities of companies that are incorporated in mainland China that are permitted to be traded by international investors thanks to government regulation.

The index comprises the 50 largest companies on the Shanghai and Shenzhen stock exchanges by market capitalisation and is free float-adjusted and liquidity screened. The instrument is priced in US Dollars on the {%brand.name%} platform.

The index was launched on 13th December 2003, with a base date of 21st July 2003 and a base value of 5,000.

The China 50 index is dominated by banks, with a weighting of 33%. The second-largest sector is Insurance, with a share of 14.58%, followed by Food & Beverage with 13.28%.

China 50 index futures allow you to speculate on, or hedge against, changes in the price of Chinese stocks. Futures rollover on the 4th Friday of every month.

Dollar Index

The US Dollar Index, introduced in 1973, allows you to take a position on the overall strength of USD as measured by its performance against a basket of currencies. When it was launched the index had a base level of 100; it reached an all-time high of 164.72 in February 1985, and struck a low of 70.698 in March 2008.

Unlike the trade-weighted index of the US Dollar produced by the US Federal Reserve, the composition of the USDX has remained unaltered since its inception, save for one change: in January 1999 the euro was created, so many individual European currencies were removed from the index and replaced by the euro. Despite this change, the euro still has the same weighting in the index (57.6%) as all the currencies that it replaced combined.

After the euro, the Japanese yen is the second-largest proponent in the dollar index, with a weighting of 13.6%. The British pound with 11.9%, and the Canadian dollar, with 9.1%, are the next two largest components.

Robotics ETF

Robotics ETF (ARKQ) constituents are focused on, and are expected to substantially benefit from, the development of new products or services, technological improvements, and scientific research advancements in areas like energy, automation and manufacturing, materials, and transportation.

Companies within the ETF either develop, produce, or enable autonomous transportation, robotics & automation, 3D printing, energy storage, and space exploration.

Orange Juice

Futures contracts for Orange juice (ORA) are based upon frozen concentrated orange juice (FCOJ).

Brazil is by far the world's largest producer of oranges, harvesting 20 million metric tonnes per year. China is in second spot, but still far behind, with an annual yield of 7 million, followed by the EU (6.5 million), the US (4.8 million), and Mexico (4.6 million).

Factors that can affect the supply - and therefore the price - of orange juice include weather, crop disease, and the strength of the US dollar. For instance, orange juice futures often increase in price when hurricanes travel towards Florida, a key growing region. Consumer demand often plays a role as well; orange juice is a popular breakfast staple, but a move away from drinks with high sugar content has seen demand decline in recent years.

Poland 20

The WIG 20 Index, or Poland 20, is a blue-chip stock market index of the 20 most actively traded and liquid companies on the Warsaw Stock Exchange. Constituents are chosen from the top 20 companies trading on the Warsaw Stock Exchange as of the third Friday of February, May, August, and November.

The ranking is based upon turnover values for the previous 12 months and a closing price from the previous five trading sessions is used to calculate free float capitalisation.

The index has been calculated since 16th April, 1994 as a base value of 1,000 points. To keep the index diverse, no more than five companies from a single sector may be included in the index at any one time. Sectors covered by the index includes Commercial Banks, Oil & Gas Exploration & Production, Insurance, Metals Mining, and more.

Poland 20 futures allow you to speculate on, or hedge against, changes in the price of major stocks on the Warsaw Stock Exchange. Futures rollover on the 2nd Friday of March, June, September, and December.

Closing Price

What is a Closing price?

The closing price is the final price at which a security is traded during a trading session. It is used to determine the settlement price for trades and the value of securities at the end of the trading day.

Why is closing price important?
The closing price is important for several key reasons. Market players such as traders, investors, banks and financial institutions as well as regulators use the closing price as a reference point for determining a stock’s performance over time (which can range from a as little as seconds or minutes prior or past the closing price to durations such as a week, through a month and over the course of a year). 

What is 'after-hours' trading?
After hours trading refers to the buying and selling of securities outside of the regular trading hours of the major stock exchanges, typically 4:00 PM to 8:00 PM Eastern Standard Time. This can include both electronic trading and trading by phone. It is usually less liquid than regular trading hours and prices may be more volatile.

Can you sell at closing price?
Yes, you can sell a security at the closing price. The closing price is the final price at which a security is traded during a trading session, and can be used as a reference point for determining the settlement price for trades. If you sell a security at the closing price, you will receive the price of the security at the end of the trading day.

Consumer Price Index

What is CPI?

Consumer Price Index or CPI is a measure of the average change over time in the prices paid by consumers for a market basket of consumer goods and services. Indexes are available for the U.S. and various geographic areas. It is considered as one of the most popular measures of inflation and deflation. CPI is also used to estimate the purchasing power of a country’s currency.
 
How is CPI Calculated?
CPI is calculated by considering Key contributors, including retail and services businesses as well as the U.S. rental housing market (housing accounts for approx. 30% of the CPI). There are several CPI variations:
• CPI-U index reviews the spending habits of urban consumers in the U.S.A. This constitutes for approx. 88% of the U.S population. 
• CPI-W index for calculates changes in the costs of benefits paid to “urban wage earners and clerical workers,” which is used to calculate changes in the costs of benefits paid via Social Security. 
• CPI ex-food and energy – is highly volatile and thus is excluded from the overall CPI.

MSCI KLD 400 Social ETF

The iShares MSCI KLD 400 Social ETF (DSI) seeks to track the investment results of an index composed of U.S. companies that have positive environmental, social and governance characteristics as identified by the index provider.

VanEck Vectors Social Sentiment ETF

The VanEck Vectors Social Sentiment ETF (BUZZ) will track the BUZZ NextGen AI US Sentiment Leaders Index. This index consists of the most-favourably talked about stocks online, whether on blogs, social media or Reddit.

China CSI 300 AMC Index

China AMC CSI 300 Index comprises 300 stocks from A-share companies in China. A-shares are stocks trades on the Shenzhen or Shanghai stock exchanges and are generally only available to Chinese citizens. This ensures they command a significant premium compared to H-shares which are listed on the Hong Kong Stock Exchange and available primarily for foreign investors. 

China AMC CSI 300 Index ETF mirrors the performance of the CSI 300 Index. It is a benchmark of the 300 largest and most liquid Chinese stocks.

Commodity Tracking - DB Powershares

DBC, also known as the PowerShares DB Commodity Tracking ETF, tracks 14 commodities based on the futures curve. It aims to limit the effect of contango and maximise the effect of backwardation so that investors improve their returns. The commodities included in the ETF are gasoline, heating oil, Brent crude oil, WTI crude oil, gold, wheat, corn, soybeans, sugar, natural gas, zinc, copper, aluminium and silver.

Unlike other commodity ETFs, DBC rolls future contracts based on the shape of the future curve, rather than following a schedule. This allows the ETF to generate the best roll yield by minimising losses and maximising backwardation.

Consumer Staples Select Sector Fund

Consumer Staples Select Sector SPDR Fund (XLP) tracks US consumer staples companies within the S&P 500. This asset uses the Consumer Staples Select Sector Index as its tracking benchmark. The fund provides strong and representative exposure to consumer staples and the companies are large-cap in the main.

The index comprises just 34 holdings from the consumer sector and includes many household names. Top holdings include Procter and Gamble, Coca-Cola, PepsiCo and Walmart.

Consumer Discretionary Select Sector Fund

The Consumer Discretionary Select Sector SPDR Fund (XLY) tracks US consumer discretionary companies within the S&P 500. This asset uses the Consumer Discretionary Select Sector Index as its tracking benchmark. The top ten holdings account for 66.2% of the fund’s portfolio.

The index comprises just 66 holdings from the consumer sector and includes many household names. Top holdings include Amazon, Home Depot, McDonalds and Nike.

A-D

Cocoa

Cocoa is a “soft” commodity - referring to those that are grown rather than mined - and comes from the Theobroma tree, whose name translates as “God food” in Greek. Cocoa beans are primarily used to produce chocolate, cocoa powder and cocoa butter, the latter of which is widely-used in beauty products.

Cocoa is priced in USD per metric tonne. The highest price for cocoa on record is $4,361.58/MT, which was reached in July 1977. Cocoa traded at its lowest recorded level of $211/MT in July 1965.

West Africa accounts for around 70% of the global market supply, while Cote d'lvoire, Ghana and Indonesia are the top three cocoa producers. Latin America is a key market player as well.

As a “soft” commodity, cocoa prices are heavily affected by weather and climate news - adverse conditions could affect harvests.

Cocoa futures allow you to speculate on, or hedge against, changes in the price of cocoa. Futures rollover on the first Friday of February, April, June, August, and November.

Account Balance

What is an account balance in trading?

A trader's "account balance" is the total value of the account including all and any settled profit & loss, deposits, and withdrawals. 

How do I check my trading account balance?
As mentioned, your account balance is the total sum of settled positions, P&L, deposits, and withdrawals. Yet this balance does not include profit or loss resulting from any open positions. If positions are indeed open, the balance might change depending on pending losses or profits until such positions are closed. As such, it is recommended to check your trading account balance regularly as new positions open and close on a regular basis.

Commodities

What is a Commodity?

commodity is a raw material asset such as oil, gas, gold, or wheat. Commodities can be categorised into either hard commodities or soft commodities. 

What are Soft Commodities?
Soft commodities typically refer to raw materials that are grown rather than mined such as coffee beans or sugar. 

What Are Hard Commodities?
Whereas hard commodities must be extracted such as natural gas or crude oil. 

A commodity is often exchangeable for other commodities of the same type and can be purchased through either the spot market using cash, or through derivatives like futures.

Cardano

Cardano differs from other cryptos by taking a research-led, collaborative approach to cryptos. Traders of its ADA currency help operate the network and can vote on software changes. Cardano is priced in USD and the instrument allows you to trade the ADA/USD spot rate.

Compound

Compound cryptocurrency is all about supply and demand. Its protocol, based on Ethereum blockchain, creates money markets with interests algorithmically derived from supply and demand levels. Users can earn or pay a floating interest rate without need for negotiating with other parties. Compound is priced in USD and tradeable through the COMP/USD symbol.

CAD/CHF

CAD/CHF is the abbreviation for the Canadian dollar to Swiss franc exchange rate. US$260 billion worth of Canadian dollars and US$243 billion worth of francs is traded each day. The Canadian dollar is the 6th most-traded currency, and makes up one side in 5.1% of all daily trades. The Swiss franc is the 7th most-popular trading currency in the world and is involved in nearly 5% of all forex transactions each day.

The pair is sensitive to changes in market risk appetite, as the Canadian dollar is a commodity-correlated currency and the franc is a safe-haven currency.

The producing and exporting of crude oil is vital to the Canadian economy, so changes in price can push CAD/CHF higher or lower. Oil is sensitive to changes in risk appetite, creating further volatility for the Canadian dollar.

Compounding the effect of market uncertainty upon CAD/CHF is the Swiss franc's reputation as a safe-haven, thanks to Switzerland's strong economy and developed financial sector.

CAD/JPY

The Canadian dollar to Japanese yen exchange rate is identified by the abbreviation CAD/JPY. The Canadian dollar is the 6th most-popular currency, making up one side in 5.1% of daily trades. The Japanese yen is the 3rd most-traded currency, accounting for 22%.

The pair is highly sensitive to changes in market risk-appetite, as the Canadian dollar is a commodity-correlated currency and the Japanese yen is a safe-haven currency.

The Canadian dollar is highly sensitive to changes in the price of crude oil - Canada's primary export. In turn, crude prices often respond to market appetite for risk, so the strength of the CAD/JPY exchange rate is largely dictated by whether traders are feeling optimistic or pessimistic over global conditions.

In times of market uncertainty, appetite for the safe-haven Japanese yen can increase sharply. However, the yen is often softened by the Bank of Japan's ultra-loose monetary stimulus package, which includes quantitative easing and negative interest rates.

Coffee

Coffee is a “soft” commodity - referring to those that are grown rather than mined. It is the world's second-most popular commodity, behind only crude oil. The market is worth around $100 billion.

Over 50 countries worldwide grow coffee, with around two-thirds of the global supply produced in the Americas. Brazil, Vietnam, and Colombia are the three largest producers.

Coffee is priced in USD per lb. It hit a record high of $339.86/lb during April 1977, while the lowest price on record is $42.50/lb in October 2001.

Coffee is a highly-traded commodity that is often bought by speculators, so risk appetite has a strong effect on prices. Around half of the coffee produced on the globe is bought by just four companies: Kraft, P&G, Sara Lee, and Nestle, so changes in the fortunes of these companies can also impact prices.

Coffee futures allow you to speculate on, or hedge against, changes in the price of coffee. Futures rollover on the second Friday of February, April, June, August, and November.

Copper

Copper is found in ore deposits around the world and top producers include Chile, China, Peru and the US. It was the first metal to be used by humans and remains essential for a variety of uses: it is the world's third most widely used metal, after iron and aluminium.

Copper is priced in USD per lb. it's all-time high was $4.58, which it reached in February 2011. Copper hit a record low of $1.94 in January 2016.

Like silver and gold, it is malleable and a good conductor of electricity, however it is also relatively inexpensive which makes it ideal for industrial applications such as wiring, plumbing and circuitry.

The price of copper is influenced by a number of factors including the strength of the US Dollar, demand from China and extraction costs. However, the energy-intensive refining process mean it is also susceptible to changes in oil prices.

Instability in the political climate of key countries where copper is mined can also affect the price.

Corn

Corn is a soft commodity - referring to those that are grown rather than mined - and is valued for its versatility. As well as being a dietary staple it has many other uses, from biofuels to animal feed.

Corn is grown in every continent on the globe with the exception on Antarctica. 40% of global corn supplies are produced in the US, while China, Brazil, the EU, and Argentina are also major players.

Corn is priced in USD per bushel. In August 2012 corn struck a record high of $849, while the lowest price ever recorded was $22.90 in November 1932.

As corn is a soft commodity, prices are vulnerable to weather conditions which can affect harvests. The strength of emerging market economies also affects prices, as demand for meat products rises as incomes rise, and much of the corn produced each year is used for animal feed.

Corn futures allow you to speculate on, or hedge against, changes in the price of corn. Futures rollover on the fourth Friday of February, April, June, and November.

Cotton

Cotton is a “soft” commodity - meaning it is grown and not mined - and has for thousands of years been one of the most important crops. Its lightweight and absorbent fibres mean that cotton is the most popular natural fibre on the planet.

China, India, and the US are the top producers of cotton in the world; in the US cotton primarily comes from Florida, Mississippi, California, Texas, and Arizona.

The fibre is priced in USD per lb. It reached a record high price of $210.64 during March 2011 and struck a record low of $5.66 during December 1930.

As well as weather conditions, cotton prices are heavily influenced by demand for competing synthetic fibres and changes in government policy. Cotton farmers enjoy heavy subsidies in the US, so a change here could have significant consequences.

Cotton futures allow you to speculate on, or hedge against, changes in the price of cotton. Futures rollover on the third Friday of February, April, June, and November.

Chainlink (LINK)

Chainlink (LINK) connects contracts smartly by linking them with real world events, data, and payments. Using the LINK cryptocurrency, Chainlink is tradeable on our platform via the LINK/USD instrument.

China 50

The FTSE China A50 index, also known as the China 50, is a Chinese benchmark index that allows investors to trade A Shares, which are securities of companies that are incorporated in mainland China that are permitted to be traded by international investors thanks to government regulation.

The index comprises the 50 largest companies on the Shanghai and Shenzhen stock exchanges by market capitalisation and is free float-adjusted and liquidity screened. The instrument is priced in US Dollars on the {%brand.name%} platform.

The index was launched on 13th December 2003, with a base date of 21st July 2003 and a base value of 5,000.

The China 50 index is dominated by banks, with a weighting of 33%. The second-largest sector is Insurance, with a share of 14.58%, followed by Food & Beverage with 13.28%.

China 50 index futures allow you to speculate on, or hedge against, changes in the price of Chinese stocks. Futures rollover on the 4th Friday of every month.

Dollar Index

The US Dollar Index, introduced in 1973, allows you to take a position on the overall strength of USD as measured by its performance against a basket of currencies. When it was launched the index had a base level of 100; it reached an all-time high of 164.72 in February 1985, and struck a low of 70.698 in March 2008.

Unlike the trade-weighted index of the US Dollar produced by the US Federal Reserve, the composition of the USDX has remained unaltered since its inception, save for one change: in January 1999 the euro was created, so many individual European currencies were removed from the index and replaced by the euro. Despite this change, the euro still has the same weighting in the index (57.6%) as all the currencies that it replaced combined.

After the euro, the Japanese yen is the second-largest proponent in the dollar index, with a weighting of 13.6%. The British pound with 11.9%, and the Canadian dollar, with 9.1%, are the next two largest components.

Closing Price

What is a Closing price?

The closing price is the final price at which a security is traded during a trading session. It is used to determine the settlement price for trades and the value of securities at the end of the trading day.

Why is closing price important?
The closing price is important for several key reasons. Market players such as traders, investors, banks and financial institutions as well as regulators use the closing price as a reference point for determining a stock’s performance over time (which can range from a as little as seconds or minutes prior or past the closing price to durations such as a week, through a month and over the course of a year). 

What is 'after-hours' trading?
After hours trading refers to the buying and selling of securities outside of the regular trading hours of the major stock exchanges, typically 4:00 PM to 8:00 PM Eastern Standard Time. This can include both electronic trading and trading by phone. It is usually less liquid than regular trading hours and prices may be more volatile.

Can you sell at closing price?
Yes, you can sell a security at the closing price. The closing price is the final price at which a security is traded during a trading session, and can be used as a reference point for determining the settlement price for trades. If you sell a security at the closing price, you will receive the price of the security at the end of the trading day.

Consumer Price Index

What is CPI?

Consumer Price Index or CPI is a measure of the average change over time in the prices paid by consumers for a market basket of consumer goods and services. Indexes are available for the U.S. and various geographic areas. It is considered as one of the most popular measures of inflation and deflation. CPI is also used to estimate the purchasing power of a country’s currency.
 
How is CPI Calculated?
CPI is calculated by considering Key contributors, including retail and services businesses as well as the U.S. rental housing market (housing accounts for approx. 30% of the CPI). There are several CPI variations:
• CPI-U index reviews the spending habits of urban consumers in the U.S.A. This constitutes for approx. 88% of the U.S population. 
• CPI-W index for calculates changes in the costs of benefits paid to “urban wage earners and clerical workers,” which is used to calculate changes in the costs of benefits paid via Social Security. 
• CPI ex-food and energy – is highly volatile and thus is excluded from the overall CPI.

China CSI 300 AMC Index

China AMC CSI 300 Index comprises 300 stocks from A-share companies in China. A-shares are stocks trades on the Shenzhen or Shanghai stock exchanges and are generally only available to Chinese citizens. This ensures they command a significant premium compared to H-shares which are listed on the Hong Kong Stock Exchange and available primarily for foreign investors. 

China AMC CSI 300 Index ETF mirrors the performance of the CSI 300 Index. It is a benchmark of the 300 largest and most liquid Chinese stocks.

Commodity Tracking - DB Powershares

DBC, also known as the PowerShares DB Commodity Tracking ETF, tracks 14 commodities based on the futures curve. It aims to limit the effect of contango and maximise the effect of backwardation so that investors improve their returns. The commodities included in the ETF are gasoline, heating oil, Brent crude oil, WTI crude oil, gold, wheat, corn, soybeans, sugar, natural gas, zinc, copper, aluminium and silver.

Unlike other commodity ETFs, DBC rolls future contracts based on the shape of the future curve, rather than following a schedule. This allows the ETF to generate the best roll yield by minimising losses and maximising backwardation.

Consumer Staples Select Sector Fund

Consumer Staples Select Sector SPDR Fund (XLP) tracks US consumer staples companies within the S&P 500. This asset uses the Consumer Staples Select Sector Index as its tracking benchmark. The fund provides strong and representative exposure to consumer staples and the companies are large-cap in the main.

The index comprises just 34 holdings from the consumer sector and includes many household names. Top holdings include Procter and Gamble, Coca-Cola, PepsiCo and Walmart.

Consumer Discretionary Select Sector Fund

The Consumer Discretionary Select Sector SPDR Fund (XLY) tracks US consumer discretionary companies within the S&P 500. This asset uses the Consumer Discretionary Select Sector Index as its tracking benchmark. The top ten holdings account for 66.2% of the fund’s portfolio.

The index comprises just 66 holdings from the consumer sector and includes many household names. Top holdings include Amazon, Home Depot, McDonalds and Nike.

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Economic Calendar

What is an Economic Calendar?

An economic calendar is a schedule of dates when significant news releases or events are expected, which may affect the global or local financial markets volatility as well as currency exchange rates. Traders and all functions involved in the markets and financial issues make use of the economic calendar to follow up and prepare on what is going to happen, where and when.
 
Due to the impact of financial events and announcements, on exchange rates, the forex market is highly affected by monetary and fiscal policy announcements. As such, traders make use the economic calendar to plan ahead on their positions and trades and to be aware of any issues that may affect them.

What is Financial Market volatility? 
Financial Market volatility is the degree of variation of a trading price series over time. Many traders will consider the historic volatility of a stock. This is the fluctuations of price in a given time frame. Historic volatility creates forward looking implied volatility. This allows us to predict price variation in the future.

Exchange

What is an Exchange?

An exchange, market or stock exchange is a marketplace where commodities, securities, derivatives, stocks and other financial instruments are traded. The core function of an exchange is to provide for organized trading and efficient distribution of market & stock information within the exchange. Exchanges provide their users the necessary platform from which to trade.

Why should you trade on an exchange?
Trading on an exchange offers security, reliability, liquidity and low costs. Exchange-regulated markets provide transparency, where all market participants have the same access to prices and trading information. Exchanges also offer robust risk management and safety protocols to protect against any price manipulation or abuse of the system.

What are types of exchange?
There are three main types of trading exchanges: traditional exchanges, dark pools, and electronic communication networks (ECNs). Traditional exchanges provide an organized marketplace to buy and sell securities while dark pools facilitate large orders in private forums. ECNs allow investors to directly access liquidity pools and execute trades with other participants in the market.

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Polkadot

Polkadot (DOT) fuses two blockchains: the main, relay chain, where transactions are permanently agreed upon, and user-generated chains. Tradeable in USD, Polkadot is priced in USD and uses the DOT/USD spot rate.

Orange Juice

Futures contracts for Orange juice (ORA) are based upon frozen concentrated orange juice (FCOJ).

Brazil is by far the world's largest producer of oranges, harvesting 20 million metric tonnes per year. China is in second spot, but still far behind, with an annual yield of 7 million, followed by the EU (6.5 million), the US (4.8 million), and Mexico (4.6 million).

Factors that can affect the supply - and therefore the price - of orange juice include weather, crop disease, and the strength of the US dollar. For instance, orange juice futures often increase in price when hurricanes travel towards Florida, a key growing region. Consumer demand often plays a role as well; orange juice is a popular breakfast staple, but a move away from drinks with high sugar content has seen demand decline in recent years.

Poland 20

The WIG 20 Index, or Poland 20, is a blue-chip stock market index of the 20 most actively traded and liquid companies on the Warsaw Stock Exchange. Constituents are chosen from the top 20 companies trading on the Warsaw Stock Exchange as of the third Friday of February, May, August, and November.

The ranking is based upon turnover values for the previous 12 months and a closing price from the previous five trading sessions is used to calculate free float capitalisation.

The index has been calculated since 16th April, 1994 as a base value of 1,000 points. To keep the index diverse, no more than five companies from a single sector may be included in the index at any one time. Sectors covered by the index includes Commercial Banks, Oil & Gas Exploration & Production, Insurance, Metals Mining, and more.

Poland 20 futures allow you to speculate on, or hedge against, changes in the price of major stocks on the Warsaw Stock Exchange. Futures rollover on the 2nd Friday of March, June, September, and December.

MSCI KLD 400 Social ETF

The iShares MSCI KLD 400 Social ETF (DSI) seeks to track the investment results of an index composed of U.S. companies that have positive environmental, social and governance characteristics as identified by the index provider.

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Risks associated with CFDs

What are the risks associated with CFD and Forex trading?

CFDs are a leveraged financial instrument that allow traders to gain exposure to an underlying asset, such as shares, commodities or indices. While this provides great potential for profits, it also carries significant risks. The main risk is the possibility of losses greater than your initial deposit if the market moves against you. CFDs also have costs associated with trading such as commissions and spreads. Make sure you understand the risks before trading with CFDs.

What are the disadvantages of CFDs?
CFDs are complex instruments and may not be suitable for everyone due to the risk of leverage. CFDs also come with costs, including spreads and commissions which can cut into potential profits. Furthermore, it's important to understand how margin calls work as well as potential losses from unanticipated price movements or illiquidity in the market.


How much can you lose in a CFD trade?
In a CFD trade, you can potentially lose more than your initial investment, as the loss is based on the difference between the entry and exit price of the trade. It is important to set stop loss orders to limit potential losses. Additionally, using proper risk management strategies can help to minimize losses.

 

Robotics ETF

Robotics ETF (ARKQ) constituents are focused on, and are expected to substantially benefit from, the development of new products or services, technological improvements, and scientific research advancements in areas like energy, automation and manufacturing, materials, and transportation.

Companies within the ETF either develop, produce, or enable autonomous transportation, robotics & automation, 3D printing, energy storage, and space exploration.

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Volatility

What is Volatility?

Volatility is the amount of uncertainty or risk associated with the size of changes in a security's value. It is measured by calculating the standard deviation of returns over a given period. High volatility means the price of an asset can change dramatically over a short time period in either direction. Traders often take advantage of volatility by speculating on stocks, options, and other financial instruments.

What causes market volatility?
Market volatility can be caused by a variety of factors including economic data releases, political events, changes in interest rates, and unexpected news or events. It can also be caused by changes in investor sentiment, speculation and market manipulation.

How do you know if a market is volatile?
A market is considered volatile if prices change rapidly, unpredictably, and significantly. This can be measured using volatility indices or by analyzing price movements and fluctuations over time.

VanEck Vectors Social Sentiment ETF

The VanEck Vectors Social Sentiment ETF (BUZZ) will track the BUZZ NextGen AI US Sentiment Leaders Index. This index consists of the most-favourably talked about stocks online, whether on blogs, social media or Reddit.