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.
Related terms
Unrealised Gain/Loss
The theoretical gain or loss on open positions valued at current market rates. Unrealised gains and losses become realised profits or losses only when the position is closed.
Read full definitionRunning Profit/Loss
The amount you currently stand to gain or lose if you closed your open trades. Platforms typically show a running profit in green and a running loss in red.
Read full definitionCapital 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.
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Aggressive
A description of traders and/or price action acting with conviction.
Read full definitionArbitrage
The simultaneous buying and selling of the same currency in different markets to profit from small price differences. The strategy exploits temporary inefficiencies in FX markets.
Read full definitionAt Best
An instruction given to a dealer to buy or sell at the best rate that can be obtained at a specific time.
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An instruction given to a dealer to buy or sell at a specific price or better.
Read full definitionBroker
A third party coordinating the sale of financial securities between sellers and buyers. Exchanges only accept orders from their members, so traders and investors use brokers as intermediaries; brokers are compensated through commissions, fees or payment from the exchange.
Read full definitionBulls
Traders who expect prices to rise and who may be holding long positions.
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