Spread Betting Glossary: V

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V

Variation margin
The application of current trading profits in respect of total margin; applying trading profits and losses to account deposits to calculate the total ability of a trading account to pay off its debts, variable depending on the strength or weakness of current open positions.
Virtual trading
A means of practice trading using a demo account that requires no trader deposits and provides only virtual returns and losses, enabling beginners to develop trading strategy on live markets without exposure to risk.
Volatility
The degree to which a market is likely to move sharply up or down. More volatile markets enable greater returns to be made in a shorter period of time.