Risk
The exposure to potential losses taken on when trading a security. Different assets carry different levels of risk, letting you tailor strategy to your experience and appetite.
Related terms
Risk Management
The employment of financial analysis and trading techniques, such as attaching stops and limits, to reduce and control exposure to various types of risk.
Read full definitionCurrency Risk
The danger of losing capital due to changes in foreign exchange prices, including the risk to a portfolio when currency markets experience strong moves.
Read full definitionControlled Risk
A position whose maximum possible loss is capped at a certain level, typically through a guaranteed stop-loss order, giving the trader full control of risk on the trade.
Read full definitionMore in General
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 definitionAsset
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.
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.
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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