Account mechanics

Family X · 32 entries

This family of terms covers the mechanics of an account: who holds it, what instruments can be traded inside it, how a position is sized, and what costs are charged when it is opened or closed. The terms answer the question of what actually happens between deciding to trade and seeing a result, rather than how to predict price. A newcomer should read trade first, because every other term in the family is a modification of that basic unit of exchange. From there, trade size and broker establish the two variables that determine the practical outcome of any trade.

The most common mistake is treating the account-level terms as interchangeable, so that a term describing a product, such as cfd trading, is confused with a term describing the entity that provides access to it, such as cfd broker.

Other families: I II III IV V VI VII VIII IX XI XII · Index A–Z