A

Above option

A CFD contract is said to be “Above Option” if at expiry the market price ruling the underlying asset on that contract at expiry is actually higher than the “Strike Price”.

Ask price

The price that a seller is asks for an asset. In other words, the market price.

Asset

Any single Commodity, Currency, Stock, or Index appearing on the TradeCapitalPlus trading platform.

AT THE MONEY

If at the moment when a contract expires the market price for any given “Asset” is the same as the ‘’Strike Price’’ then that contract is “at-the-money”.

B

BELOW OPTION

A CFD contract is said to be “Below Option” if at expiry the market price ruling the underlying asset on that contract is actually less than the “Strike Price”

BID PRICE

The price at which you can sell an asset or security, i.e., the price at which someone is willing to buy an asset.

BONUS

A “Bonus” is an amount of money which TradeCapitalPlus credits to your trading account. The bonus enables you to make a larger volume of CFD contracts. Bonuses are awarded on the condition that you commit yourself to make a certain amount of trade volume.

C

CFD CONTRACT

A CFD contract is an ‘all or nothing’ contract by which an investor will either receive a profit or no profit at all. A CFD contract is a time limited contract for which there are only two outcomes at expiry time: (A) the market price for an asset is higher than the ‘’Strike Price’’, or (B) the market price for an asset is lower than the “Strike Price”.

COMMODITIES

Commodities are raw or naturally occurring materials. Such as for example: Gold, Oil, Copper, Coffee and Soya Bean.

CURRENCY

A “currency” is a national system of money or monetary units in circulation as banknotes and coins. Currencies are organized into pairs for CFDs. E.g., EUR/USD; GBP/USD

CURRENT PRICE

The “Current Price” is the asset price on the actual stocks, currencies and commodity markets at any given moment.

D

DECLARATION OF DEPOSIT (DOD)

When you deposit money into your TradeCapitalPlus Account, we will send you a Declaration of Deposit/s (DOD). The DOD is your declaration that you agree to the deposits showing on your TradeCapitalPlus account. It is also a declaration that you agree to TradeCapitalPlus’s Anti-Money Laundering policy. You are required to print the DOD, sign it, scan or photo it, and then send the signed copy to TradeCapitalPlus’s Compliance Department.

E

EXERCISE PRICE

This is the price of the “Asset” or “Instrument” being traded when the contract was placed.

EXPIRY PRICE

The “Expiry Price” is the market price of any asset at the moment a CFD contract expires.

EXPIRY TIME

CFD contracts have a fixed life-span which is chosen by you at the moment the contract is made. The expiry time is expressed as a date/time.

F

FIXED RETURN

The actual percentage of return on a CFD contract fixed at the moment the contract is made.

FUNDAMENTAL ANALYSIS

‘’Fundamental Analysis’’ denotes analysis of current economic and political data affecting the markets. Fundamental Analysis is the evaluation of an asset by studying all of the factors affecting its price, e.g. consumer confidence, financial policy, global economic conditions, company reports, etc.

I

INDICES

‘’Indices’’ (singular ‘Index’) are combinations of several stocks or other investment vehicles whose combined value is expressed as a total and that is measured against a base value from a specific date. Examples of ‘’Indices’’ are: US Dow Jones Index; UK FTSE; Germany’s DAX.

IN-THE-MONEY

A CFD contract is ‘’in-the-money’’ if, at the moment the contract expires, the predicted direction for the price movement on the underlying asset (regardless of whether it was above or below, i.e., a ‘’Call’’ or a ‘’Put’’) turns out to be correct.

INSTRUMENT

“Instrument” is a word often used inter-changeably. It is chiefly used to refer to contractual documents. Sometimes, it refers to the “Asset” or underlying index, stock, commodity, or currency on which a CFD contract is made.

INVESTMENT

The amount of money assigned to a CFD contract.

K

KYC

‘Know Your Client’ is a procedure we follow in order to protect our clients interests. Learn how to fully validate and verify your trading account.

L

LADDER OPTION

A kind of CFD contract which allows you to earn a profit when the asset’s market price reaches one or more of five levels above or below the ‘’Strike Price’’ any time before the contract expires.

LONG TERM OPTION

A CFD contract with a time-frame of from a minimum of seven days up to a maximum of ten months.

N

NET EXPOSURE

Your ‘’Net Exposure’’ is the total value of all the CFD contracts you have already placed which have not expired.

O

ONE TOUCH

‘’One Touch’’ CFDs are contracts where the trader stays in-the-money if the market price for an asset touches a predefined price at any moment before the contract expires.

OUT-OF-THE-MONEY

An investor is said to be “out-of-the-money” any time their prediction on the direction of the asset price is incorrect. No payout will be awarded to the trader.

P

PAYOUT

The percentage or amount of money you are entitled to receive at moment the CFD contract expires.

PAIRS

An exciting trading type where you put two different assets against each other to determine which will perform better.

PIP

A Pip or “Point In Percentage” is any of up to four “decimal points” to the right of the decimal for prices. E.g., 0001 = 1 pip; 0010 = 10 pips; 1.9875 = 1 plus nine thousand eight hundred and seventy-five pips.

PROFIT

“Profit” is the amount you win when a CFD contract is “ïn-the-money”.

R

RANGE INSTRUMENT

An instrument that allows the customer to choose whether the value of an underlying asset at expiry time for the CFD contract will fall inside or outside a specified range. The range is demarcated by lower and higher target price limits.

RETURN

The “Return” is the sum total of profit plus the amount you originally assign to a CFD contract. You receive your ‘’Return’’ when a CFD contract expires in-the-money at the expiry time.

S

SIGNALS

‘’Signals’’ are formulated by expert financial analysts, and these are intended to alert you to exciting investment opportunities. Signals are sent to you as email bulletins. Signals are intended as a guide only however and are not necessarily 100% accurate.

SPOT FOLLOW

TradeCapitalPlus online trading platform has a ‘Spot Follow’ tool which enables you to watch and follow the performance of other investors on the TradeCapitalPlus website platform, giving you the ability to view the degree of successful or unsuccessful price direction positions.

STAKE

“Stake” is the amount of money invested in a CFD contract.

STRIKE PRICE

The Strike Price, also commonly referred to as the “Exercise Price”, is the value of the original “Asset” during when the initial contract was agreed upon

T

TECHNICAL ANALYSIS

Technical Analysis is concerned with the mathematical study of the price of an asset. It focusses on data and information concerned with: supply and demand factors; as well as factors relating to trend lines, patterns and other movements on charts and graphs for individual assets.

U

UNDERLYING ASSET

Any individual commodity; currency; stock; or index that is the basis for a CFD contract.