Simultaneously buying and selling a specific asset on 2 different markets in order to profit from the differential.

The price that a seller is asking for his/her asset. In forex and CFD trading, the broker determines the ask price.

A stock, commodity, currency, index or any other entity one may trade or invest in.

Forex slang for the Australian-US Dollar pair.

The first currency quoted in a forex pair upon which the value of the pair is determined. The pair’s value is equal to the amount of counter currency (the second currency quoted) required to buy/sell one unit of the Base currency (the pair). If 1 EURUSD – a currency pair in which the Euro is the Base currency and the US Dollar is the Counter currency – equals 1.1.000, 1 Euro equals 1.1000 US Dollars.

A market for an asset whose value is declining. A bear market is characteristically corroborated by a 20% loss of value over a specified time period.

The price that one party is prepared to bid for a counterparty’s asset. In forex and CFD trading, the broker determines the bid price.

The disparity between Bid and Ask prices represents the broker’s (money changer’s) profit for administering a transaction/position.

An option on an asset whose payout is determined when the option is purchased and whose expiration can either be “in the money” (successful) or “out of the money” (unsuccessful).

A shared online ledger in which data is maintained in closed sequentially developing, verifiable data blocks.