Glossary of Terms
ASIC
The Australian Securities and Investments Commission.
BUY
Placing a trade if you think the market will rise.
CLOSING A TRADE
Where you place a second order of equal size in the opposite direction to your first order on the same contract, thus establishing your profit or loss.
CONTRACT NOTE
Document sent out confirming trades and limit orders.
CREDIT ALLOCATION
The maximum level to which a client can trade.
EXPIRY DATE
The date at which a contract can no longer be traded.
FILL
The execution of an order.
FUTURES
The estimated value of an underlying market at a given date in the future.
G.F.D.
Good for the day order.
G.T.C.
Good until cancelled order.
GAPPING THROUGH
If the market trades through the level specified by you in an order, without actually trading at that given level.
GUARANTEED STOP LOSS
For a small charge, a guaranteed stop loss is a stop loss order that is guaranteed to be filled at the price level requested and therefore is not vulnerable to gapping through.
LAST DAY OF DEALING
The last day on which the client can open or close a trade in a relevant market.
LIMIT ORDER
An order which if executed will be at least the same or a better level than the present market quote. i.e. Selling at a higher price, or buying at a lower price.
MARGIN CALL
The cash amount required when your open positions move against you over and above your existing credit allocation and cash deposits.
OPTION
The right, but not the obligation, to buy or sell an underlying financial instrument on or before a specific date at the given price, (strike price). i.e. A call is a right to buy, a put is a right to sell.
OUR QUOTE
When the order level specified is being quoted by City Index dealers.
ROLL OVER
Transferring a trade that is near to expiry into the next contract period. This also applies to certain daily markets.
SCREEN PRICE
An indicative price showing on screen of the current bid and offer of markets quoted by City Index.
SELL
Placing a trade if you think the market will fall.
SETTLEMENT
The official expiry level of a market at which any open positions will be closed.
SPREAD
Difference between the “buy” and “sell” quotes of a market.
STATEMENT
Details all trading activity and shows open positions, cash on deposit, open profit & losses, and closed out positions.
STOP LOSS
An order placed to limit losses on a trade or enter markets at a price worse than current market levels.
TICK
Denotes the minimum point movement in a market.