Confused by some of the terminology surrounding spread betting and the financial markets? Check our clear and concise trading glossary.


The price at which a financial instrument is bought. The ask price is the higher end of the Intertrader quote. Also known as the ‘offer’ price.

Basis of expiry

The Intertrader specification of the price at which a contract (bet) expires.

Bear (or a bear market)

Someone with a negative view of a particular market or asset. A bear market is accordingly one that is falling or lacking confidence. In financial terms a bear is the opposite of a bull.


The price at which a financial instrument is sold. The bid price is the lower end of the Intertrader quote.


A blue-chip stock is that of a well-established company which is considered stable and which pays regular dividends. Typically, the term ‘blue-chips’ is used to refer to the constituents of the major stock indices. The term derives from the high value of blue casino chips.

Bull (or a bull market)

Someone with a positive view of a particular market or asset. A bull market is accordingly one that is rising or gaining confidence. In financial terms a bull is the opposite of a bear.


When you buy (or ‘take’ or ‘go long’) with Intertrader this means you are making an Up Bet (or closing a Down Bet).


The exchange rate between the UK pound sterling and the US dollar. The term is derived from the telegraph cable that was laid across the Atlantic between the UK and the US in the nineteenth century.

Capital Gains Tax

The UK tax on profits realised through the sale of assets. Profits from spread betting are exempt from CGT.


A charge made by brokers and other intermediaries for facilitating certain trades. Intertrader takes no commission for spread betting.


A physical substance traded on an exchange. Typical commodities include ‘energies’ (such as crude oil), ‘metals’ (such as gold and silver) and ‘soft’ commodities (foodstuffs such as sugar, wheat and coffee).

Contract month

The month during which a futures contract expires, and during which delivery may take place according to the terms of the contract.

Day trading

Opening and closing a contract on the same day. Day traders trade on very short-term market movements.

Dow Jones

The Dow Jones Industrial Average is one of the premier US stock indices, comprising a weighted average of the stock prices of 30 of the largest US companies.

Down Bet

If you think the market will fall, you would place a Down Bet. See ‘Sell’ and ‘Short’.


The date and time at which the relevant bet expires.

Fundamental Analysis

The study of a company’s key economic data, its ‘fundamentals’, as a guide to its future performance in the stock market. Analysts will consider both quantitative factors such as the details contained in a company’s financial statements and qualitative factors such as brand strength, technology and the capability of its board of directors.


The interest you pay to Intertrader if you keep a long (bought) Rolling Daily position open overnight, and the interest you receive from Intertrader if you keep a short (sold) Rolling Daily position open overnight.

FTSE 100

The premier UK stock index, comprising a weighted average of the 100 largest companies on the London Stock Exchange.

Future/futures contract

A standardised, transferable, exchange-traded contract that expires on a specified future date.

Gap (‘gapping’ or ‘slippage’)

Where a market moves directly from one correctly quoted price to another, significantly different, correctly quoted price. There can be many reasons for gapping: economic figures; company announcements; political events; natural disasters etc but the effect is that any fill on a stop-loss, limit or new order may be at a different level from that requested by the client.

Gearing (or Leverage)

The correlation between potential profit/loss against your initial deposit. A highly geared or leveraged position involves substantial risk to your money while increasing the potential return from your capital. Spread betting is a leveraged product in that it allows you to buy (or sell) a financial product with substantially less money than the actual full market value of that financial product. See ‘Margin’.

Germany 30

The premier German stock index, comprising a weighted average of the 30 largest companies on the Frankfurt Stock Exchange.

GFD (Good For the Day)

An order valid for the day of placement only.>

GTC (Good Till Cancelled)

An order valid until either cancelled or the underlying contract has expired.


The action of offsetting your exposure in one area by opening an opposite position in a related area. The object of hedging is to reduce your risk. For example, a commercial farmer whose livelihood depends on selling wheat might sell a wheat futures contract to reduce his exposure to fluctuating wheat prices. Similarly, if you had an Up Bet in the FTSE you might enter a Down Bet in the German, a related market. Although this is not an exact hedge, it is unlikely that the FTSE will move heavily in the opposite direction to the German, so you have reduced your risk on the FTSE.

Last dealing day

The last day in the contract month on which a customer may deal in the product. (This may differ significantly to the Expiry.)


See ‘Gearing’.


The ability of an asset to be converted into cash quickly, without any price discount or restriction to the size of transaction. A liquid market is one with a sizeable flow of buyers and sellers, thus facilitating new transactions.

Limit order

A limit order is designed to lock in potential profits. It is an instruction to close your position (by buying or selling) should the price hit a specified, more favourable level. The level of a limit order will be higher than the current market level for long positions or lower than the current market level for short positions.


A ‘long position’ is one that will benefit from a rise in the market price. ‘Going long’ means that you are placing an Up Bet.


Margin is the amount of money you need on your account to run an open position. It is called margin as it is a fraction of the full market value of your position. Margin is calculated as the amount of money you must have in your account to satisfy Intertrader that you are able to honour your debt should your bet lose money.

Margin requirement

Your margin requirement will differ from position to position, and may be affected by the placement of a stop-loss order. In certain cases, for instance where the market ‘gaps’ (see above), you may lose more than your initial margin requirement. Your margin requirement will also change if you change the level of your stop-loss order.

Market hours

The times at which Intertrader will quote on a given contract.

Minimum bet

The minimum bet in pounds (euros or dollars) per point that we will accept for that contract.

New order

An order to open a new position (buying or selling) at a level in the market which has not yet been reached. It is not attached to any existing position and is independent of any other instruction. Contingent stop-loss and limit orders may be attached to a new order.


One Cancels Other. A special type of order stating that if one part of the order is executed the other is cancelled. For instance, if you have two instructions to trade a market at different levels and one of the instructions is executed, the other instruction will be cancelled automatically.


Another name for the ask or selling price.

Open position

A contract or trade that is currently active.


An order is an instruction to make a trade at a price that is not currently available in the market but might be available at some future time. There are three types of Order: ‘Limit’, ‘Stop Loss’ and ‘New’.

Per point/per pip

These terms refer to the unit movement required to alter the profit/loss on your bet by the full stake amount. For instance, a bet per point on Vodafone is for each full penny movement in the Intertrader price for Vodafone shares. A bet per point on the FTSE 100 is for each full point’s change in the relevant Intertrader FTSE 100 contract. A 10-point movement from 5100 to 5110 on our Daily FTSE 100 contract would therefore correspond to a win or loss of £100 for a £10 per point bet. The term ‘pip’ is commonly used in FX to denote the last digit quoted.

Rolling Daily

A type of contract with no expiry date. Your bet will normally remain open until you decide to close it or an order is triggered. Adjustments are made overnight to account for the cost of interest (and dividends) in holding your position. See ‘Financing’ and also consult our Product Info Tables.


Rolling over is the practise where a position that is due to expire is closed and transferred into the next relevant monthly or daily contract. We will allow clients to roll positions from the expiring contract to the next contract for a reduced spread. For futures contracts, the original bet is closed (and becomes due for settlement) and a new bet is established.


When you sell (or ‘give’ or ‘go short’) with Intertrader this means you are making an Down Bet (or closing an Up Bet).

Settlement price

The price at which Intertrader settles a position on expiry. The basis of settlement for each contract can normally be found in the Product Info Tables.


A ‘short position’ is one that will benefit from a fall in the market price. This is also known as a sold position. ‘Going short’ means that you are placing a Down Bet.


A contract for immediate or ‘on the spot’ delivery, as opposed to a futures contract with a future expiry date. Used in FX to denote the immediate exchange of currencies.


The difference between the buying and selling ends of our quote.

Stamp duty

A UK tax on the transfer of shares and securities. One major benefit of spread betting is that it is not liable to stamp duty (although tax laws can of course change).

Stop-loss order

A pre-determined order to close an open position in a contract at a given price should that contract reach the price designated at some point in the future. An open sell would have a buy stop above the current quoted price and an open buy would have a sell stop below the current quoted price.

Technical Analysis

The study of historical market activity in order to predict future market activity. Technical Analysis, or TA, concentrates on the price chart, attempting to identify recurring patterns and levels of support and resistance, as a basis for creating a trading strategy. Different types of TA employ different technical indicators to process the statistical data.


The standard term for the smallest possible price movement in a contract. For example, one tick of the FTSE 100 is 0.1 of a point (as the FTSE is quoted to one decimal point) while one tick of Wall Street is 0.01 of a point (as the Dow is quoted to two decimal points).

Trailing Stops

Trailing stops are a risk management tool that allow you to manage your risk without restricting your potential profit. Trailing stops help you to secure your gains as the market moves in your favour, giving you added flexibility as they will automatically track your profitable positions so that you don’t have to continuously monitor your position and move your stop manually.

Underlying market

Our quote is always based upon a price received from an actual financial exchange, a real market for the instrument concerned. We refer to this as the ‘underlying’ market.

Up Bet

If you think the market will rise, you would place an Up Bet. See ‘Buy’ and ‘Long’.

US Tech 100

A major US stock index. The US Tech 100 is a weighted average of 100 of the largest non-financial companies traded on the US Tech 100.


A term to describe, and quantify, the relative movement of a given market in the recent past. A market that moves a great deal is said to be of high volatility and one that is quiet is said to have low volatility.


When you trade with Intertrader you are choosing a trusted provider with an exceptional track record

Spread betting and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of retail investor accounts lose money when trading these products with this provider.
You should consider whether you understand how these products work and whether you can afford to take the high risk of losing your money.