what is pip or a tick in forex



Pip/Tick/Point
A pip/tick/point are the general terms for the smallest
incremental move possible in any market quoted by
Capital CFDs. A pip move usually, but not always, also
represents a full ‘stake’ movement in your profit or
loss total. The most obvious exception is in UK equities
where a pip movement results in just a 1/10 stake
movement in your profit or loss. Clients should always
be aware of what the underlying stake or unit risk is for
all markets in which they wish to trade

what are Rolling Daily contracts

Rolling Daily contracts
Contracts that do not expire at the end of each day but
automatically roll to the next trading day. Overnight
financing is applied to rolling contracts

what are cfd indices

Indices
Indices are a customised basket of securities that track
a particular market or segment. Each index has its own
calculation methodology and its own specific process
in order to select particular securities. At Capital CFDs
you can trade on all of the major financial indices, such
as the Australian 200, UK 100, German 30, Wall Street
(US) and S&P 500.

stock Resistance level

Resistance level
A price level which is supposedly difficult for a particular
market to rise above.

Minimum Initial Margin Requirement

(Min)IMR – Minimum Initial Margin Requirement
The minimum amount of money required to open a new
trade in a particular contract.

what are derivative

Derivative
A security whose price is derived from an underlying
asset (e.g. a share, currency, commodity or index)
and may not give the holder any actual rights to the
underlying asset. A CFD is a derivative product.

what are derivative

Derivative
A security whose price is derived from an underlying
asset (e.g. a share, currency, commodity or index)
and may not give the holder any actual rights to the
underlying asset. A CFD is a derivative product.

leverage cfd trading

Gearing (or Leverage)
CFDs allows clients to buy or sell a financial product
with substantially less money than the actual full
market value of that financial product. The maximum
gearing allowed by Capital CFDs can be calculated by
dividing the full nominal value of a 1 unit trade in a
contract by the Min IMR. A position in a contract with
high gearing or leverage stands to make or lose a large
amount from a small percentage movement in the
underlying instrument.

what are forex trading markets

Currency/Forex/FX markets
The foreign exchange markets trade one state or
economic bloc’s currency versus another’s (commonly
called a cross rate). These markets are traded in ‘pairs’
of two separate currencies (i.e GBP/EUR is the Sterling
versus Euro currency pair). When a ‘Buy’ trade is made
in a currency pair the client is anticipating that the fist
quoted currency is going to rally versus the second.
Therefore if a client ‘Buys’ the EUR/YEN cross he wants
the Euro to rally versus the Yen.

CFD Slippage per contract

Gap (“gapping” or “slippage”)
Where a market moves directly from one correctly
quoted price to another, significantly different,
correctly quoted price or from one reasonably quoted
price by LCG to another reasonably quoted price by
LCG in relation to the size required by a client for
execution of an order. There can be many reasons for
gapping; economic figures, company announcements,
political events, natural disaster etc., but the effect is
that any fill on a stop-loss, limit or new order may be
subject to a ‘gap’ in the fill price from that requested
by the client in his/her order contract note.