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Trading Glossary

Take a look at our list of the financial terms associated with trading and the markets. From beginners starting their trading journey to experts with decades of experience, all traders need to clearly understand a huge number of terms.

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Blue-Chip Stocks

What are Blue-chip stocks?

Blue-chip stocks are shares of very large, successful, and reputable and financially companies. Blue-chip companies are mostly common household names. 

What is the difference between a regular stock and a blue-chip stock?
A blue-chip stock refers to a stock of a well-established, financially stable and reliable company with a long history of steady growth and stability. Regular stocks are any other stocks. Blue-chip stocks are generally considered a lower risk investment, while regular stocks can have varying degrees of risk.

How do you know if a stock is blue-chip?
Blue chip stocks are usually large, well-established and financially stable companies with a long history of steady growth, consistent profits and strong brand recognition.

What are some examples of bluechip stocks? 
Some examples of blue chip stocks are: 
Apple Inc. 
Microsoft Corporation 
Amazon.com Inc. 
Berkshire Hathaway 

Base Currency

What is base Currency?

For Forex trading, a “Base Currency” is the first currency in any currency pair, representing the traded currency. The second currency in the pair is the quote currency. Example: in EUR/USD, the Euro is the base currency, and you can buy 1 EUR by paying 1.1 USD. 

An exchange rate attached to a currency pair indicates how much of the quote currency is needed to buy a single unit of the mentioned base currency. For example, reading EUR/USD = 2.15 means that 1 Euro is equal to $2.15.

What is Base vs. Local currency?
When viewing or receiving a direct quote, the base currency = foreign currency. Likewise, the local currency in a pair is the quote currency.

Ripple (XRP)

Ripple (XRP) is among the largest cryptocurrencies by market cap, following Bitcoin and Ethereum.

Ripple, known as XRP, is priced in USD. It saw a high of $3.20 in January 2018.

When people talk about Ripple they are not just talking about the currency, but the Ripple network which could change the way people complete currency transfers.

Unlike other crypto payment networks, Ripple allows you to make money transfers in any form - be that Ripple, Bitcoin, USD, Yen or GDP. Plus, you can receive money in a different form to how it has been sent. For example, you could be sent Bitcoin but collect your money in USD.

Payments can happen in seconds, a significant improvement on the days or weeks required for a wire transfer with a bank.

The payment network has already seen endorsements, with American Express and Santander partnering with it for cross-border payments between the US and UK.
 

China 50

The FTSE China A50 index, also known as the China 50, is a Chinese benchmark index that allows investors to trade A Shares, which are securities of companies that are incorporated in mainland China that are permitted to be traded by international investors thanks to government regulation.

The index comprises the 50 largest companies on the Shanghai and Shenzhen stock exchanges by market capitalisation and is free float-adjusted and liquidity screened. The instrument is priced in US Dollars on the {%brand.name%} platform.

The index was launched on 13th December 2003, with a base date of 21st July 2003 and a base value of 5,000.

The China 50 index is dominated by banks, with a weighting of 33%. The second-largest sector is Insurance, with a share of 14.58%, followed by Food & Beverage with 13.28%.

China 50 index futures allow you to speculate on, or hedge against, changes in the price of Chinese stocks. Futures rollover on the 4th Friday of every month.

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Blue-Chip Stocks

What are Blue-chip stocks?

Blue-chip stocks are shares of very large, successful, and reputable and financially companies. Blue-chip companies are mostly common household names. 

What is the difference between a regular stock and a blue-chip stock?
A blue-chip stock refers to a stock of a well-established, financially stable and reliable company with a long history of steady growth and stability. Regular stocks are any other stocks. Blue-chip stocks are generally considered a lower risk investment, while regular stocks can have varying degrees of risk.

How do you know if a stock is blue-chip?
Blue chip stocks are usually large, well-established and financially stable companies with a long history of steady growth, consistent profits and strong brand recognition.

What are some examples of bluechip stocks? 
Some examples of blue chip stocks are: 
Apple Inc. 
Microsoft Corporation 
Amazon.com Inc. 
Berkshire Hathaway 

Base Currency

What is base Currency?

For Forex trading, a “Base Currency” is the first currency in any currency pair, representing the traded currency. The second currency in the pair is the quote currency. Example: in EUR/USD, the Euro is the base currency, and you can buy 1 EUR by paying 1.1 USD. 

An exchange rate attached to a currency pair indicates how much of the quote currency is needed to buy a single unit of the mentioned base currency. For example, reading EUR/USD = 2.15 means that 1 Euro is equal to $2.15.

What is Base vs. Local currency?
When viewing or receiving a direct quote, the base currency = foreign currency. Likewise, the local currency in a pair is the quote currency.

China 50

The FTSE China A50 index, also known as the China 50, is a Chinese benchmark index that allows investors to trade A Shares, which are securities of companies that are incorporated in mainland China that are permitted to be traded by international investors thanks to government regulation.

The index comprises the 50 largest companies on the Shanghai and Shenzhen stock exchanges by market capitalisation and is free float-adjusted and liquidity screened. The instrument is priced in US Dollars on the {%brand.name%} platform.

The index was launched on 13th December 2003, with a base date of 21st July 2003 and a base value of 5,000.

The China 50 index is dominated by banks, with a weighting of 33%. The second-largest sector is Insurance, with a share of 14.58%, followed by Food & Beverage with 13.28%.

China 50 index futures allow you to speculate on, or hedge against, changes in the price of Chinese stocks. Futures rollover on the 4th Friday of every month.

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Ripple (XRP)

Ripple (XRP) is among the largest cryptocurrencies by market cap, following Bitcoin and Ethereum.

Ripple, known as XRP, is priced in USD. It saw a high of $3.20 in January 2018.

When people talk about Ripple they are not just talking about the currency, but the Ripple network which could change the way people complete currency transfers.

Unlike other crypto payment networks, Ripple allows you to make money transfers in any form - be that Ripple, Bitcoin, USD, Yen or GDP. Plus, you can receive money in a different form to how it has been sent. For example, you could be sent Bitcoin but collect your money in USD.

Payments can happen in seconds, a significant improvement on the days or weeks required for a wire transfer with a bank.

The payment network has already seen endorsements, with American Express and Santander partnering with it for cross-border payments between the US and UK.
 

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