Capital Gains
The profit earned from selling an asset, such as stocks, bonds or real estate, for more than its purchase price. Capital gains are taxable and classified as short-term or long-term depending on the holding period.
Related terms
Realised Profit/Loss
The gain or loss recognised when an investment is actually sold for a higher or lower price than was paid. Buying 1,000 shares at $5 and selling at $8 realises a $3,000 profit, and only at that point does it become liable for capital gains tax.
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An economic resource that individuals, companies and other organisations can own or control to generate profit or future benefit. In FX the term frequently refers to a currency or currency pair, and assets also underpin the pricing of derivative products such as CFDs and options.
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Working Capital
The cash a business has tied up in day-to-day operations, broadly its current assets minus current liabilities. Healthy working capital lets a company pay suppliers and staff while waiting on customer payments.
Read full definitionEmerging Markets
Economies that are developing toward advanced-market status, often offering higher growth alongside greater currency, political and liquidity risk. Trading with them frequently calls for tailored FX and payment solutions.
Read full definitionAnnual General Meeting (AGM)
A formal, legally mandated gathering where a company’s shareholders meet with the board of directors and executives once a year to discuss financial performance and strategic direction. Publicly listed companies must hold AGMs to comply with corporate governance laws, while rules for private companies vary by jurisdiction.
Read full definitionBasis Point (bps)
A unit of measurement equal to 1/100th of 1%, or 0.01%, pronounced ‘bips’. Basis points are commonly used to describe small movements in interest rates, bond yields and exchange rates.
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Adherence to the laws, regulations, guidelines and specifications relevant to a business. In the FX market it involves following financial services rules and guidelines.
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One of the participants in a financial transaction.
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