Spread Betting Glossary: C
Capital Gains Tax
A UK tax on all gains made from disposing appreciated capital (i.e. assets), in excess of the annual exemption. Spread betting is tax exempt in the UK.
Synonymous with 'margin call', the broker demands a further deposit from the trader to cover his potential exposure to a position that is losing.
A UK payment system where funds can be sent to the recipient bank account within the same business day.
A trade that mirrors an open position in reverse and thus closes the position, crystallising either the profit or the liability of the trader.
Generic goods, often raw materials, which are bought and sold in specified, standardised amounts, traded for speculation and end use worldwide. For example, oil, cotton, coffee.
The minimal value of a future or option, sized at the notional value of the contract.
An investment account where the trader is afforded credit terms without the need for deposits to cover margin.
The limit set in a credit account, dictating the maximum level of exposure permitted before margin call.
Usually traded in pairings, global currencies are traded on individual indices, and traded by forex traders and spread bettors alike, with markets open 24 hours a day to allow global round-the-clock trade.
Cut and reserve
Closing an open position and opening a new position simultaneously.