Glossary of trading terms

Our comprehensive list of all the trading-related terminologies that you need to know.

Account currency

The currency you choose when opening a trading account with Deriv. All trading activities, including profits, losses, deposits, and withdrawals are done in the account currency.You can select your account currency upon sign-up, which can either be in fiat or cryptocurrencies.

Account limits

These are maximum amount of money or trading assets that you're allowed to trade within a specific period. These limits are set by default.

Accumulate (Growth rate)

A feature in accumulator trading. It’s the rate at which you can choose to grow your stake for every tick that stays within the barrier. You can choose a growth rate between 1% and 5%.

Accumulator - Growth start step

A feature in accumulator trading. It’s the minimum number of ticks before your payout starts to grow.

Accumulator - Maximum aggregate open stake

The maximum stake of all open trading positions opened by all traders per each growth rate. When this limit is hit, we’ll freeze the opening of new positions until the total stake drops.

Accumulator Options

A trade type that allows you to grow your potential profit exponentially as long as the price moves within the trade barriers.

Admin fee

It's a type of trading account charges which applies to overnight positions in Deriv MT5 swap-free accounts after a five-day grace period.

Affiliate

A Deriv business partner who introduces Deriv to potential new clients. Affiliates earn commissions based on the relevant plans they have subscribed to.

Allow equals

A feature in the Rise/Fall option trade type that allows you to earn a potential payout when the entry spot equals the exit spot. You'll have to enable it before opening your position.

American Indices

American Indices replicate the performance of the leading publicly traded companies within a particular sector or segment of the US economy.

American options

A derivative contract that can be exercised at any time before the expiry date. Some examples of these options that we offer on SmartTrader are Touch/No Touch and In/Out.

API token

A unique code generated by the API provider, granting users or applications access to specific actions. It serves as an authentication method for different scopes of access such as view, trade, perform payment operation, and admin access.

Arbitrage

A trading strategy that involves taking advantage of price discrepancies in different markets or between different instruments to earn a profit.

Asian Indices

Asian Indices replicate the performance of the leading publicly traded companies in the financial markets in Asia and Oceania.

Asians options

A derivative contract that allows you to predict if the exit spot will be higher or lower than the average of all ticks. Some examples of these options that we offer on SmartTrader are Asian Up and Asian Down.

Ask price

The price a seller is willing to sell an asset to a buyer in open trades. It is the lowest price a seller is willing to accept for an asset at a given time.

Asset

Any financial instrument that holds value and can be traded such as forex, commodities, stocks, and indices, cryptocurrencies, ETFs, and derived indices.

Asset class

Also known as an asset group, it refers to a category of financial instruments. It consists of groups of similar assets that share similar characteristics and behave in the same way in a portfolio.

Deriv offers a range of asset classes on our platforms, including:

  • Forex currency pairs
  • Commodities
  • Stocks and stock indices
  • Cryptocurrencies
  • ETFs
  • Derived indices, consisting of basket indices, synthetic indices, and derived FX
At the money

A term used in options trading to describe a situation where the strike of an option is equal to the current market price of the underlying asset. In other words, the option is "at the money" when there is no intrinsic value in the option — it is neither in the money nor out of the money.

Australia 200

Also known as the ASX 200 (Australian Securities Exchange 200 Index), Australia 200 tracks the performance of the largest and most actively traded companies listed on the Australian Securities Exchange (ASX).

Barrier offset

An options feature that allows you to set a target price of an underlying asset. The barrier offset represents the distance between the target and the current price.

Barrier(s)

The target price that you set for an underlying asset on an options trade. This allows you to predict if the market price will go above, below, or remain between your price targets.

Base currency

The first currency listed in a currency pair. It shows how much the base currency is worth as measured against the quote currency.

For more information, check out this blog article.

Base rate

The benchmark interest rate set by a central bank or monetary authority of a country. The base rate serves as the foundation for the interest rates charged by commercial banks when they lend money to customers.

Basis point

A unit of measurement used in finance to describe changes in interest rates or other financial percentages. One basis point is equal to 0.01%, or one hundredth of a percentage point.

Basket indices

Basket indices measure the value of a particular currency against a basket of five global currencies (EUR, GBP, JPY, AUD, USD), each weighted by 20%.Basket trading allows you to trade your favourite currency against a basket of major currencies.

Bear market

A market condition in which prices of assets are falling, and investor confidence is low. It is generally characterised by a consistent decline in market prices, typically by 20% or more, over an extended period of time, often several months or longer.The term "bear" comes from the metaphor of a bear swiping its paws downward to attack its prey, as the downward trend of the market resembles the bear's movement.

Bear market index

A synthetic market that replicate bearish trends with constant volatility.

Bear trader

A bear trader is someone who believes that the market or a particular asset is going to experience a decline in value. This view is known as bearish, and it typically involves selling assets that the trader owns or short selling an asset in anticipation of a market decline.

Bid-Ask spread

The difference between the highest price a buyer is willing to pay (the "bid") and the lowest price a seller is willing to accept (the "ask") for a financial asset. The bid-ask spread represents the cost of trading and reflects market liquidity, with narrower spreads typically indicating more liquid markets.

Bid price

The price at which a buyer is willing to purchase an asset from a seller. The bid price in trading is the highest price a buyer is willing to pay for an asset at a given time.

Bollinger Bands

A technical analysis indicator used to assess the volatility and potential price levels of a financial instrument. It help traders identify periods of high or low volatility, potential trend changes, and potential breakout points in the price chart.

Breakeven point

The price level at which your position's profit and loss are equal. In other words, the trade has paid for itself and there are no net profits or losses.

Breakout

Breakout in trading refers to a price movement of a trading asset beyond a significant level of support or resistance.

Broker

A person or a firm that acts as an intermediary between buyers and sellers of financial instruments. Brokers facilitate trades by connecting buyers and sellers and executing trades on behalf of their clients.

Bug bounty

Our bug bounty programme that offers rewards to individuals who identify and report bugs on our platforms. Rewards are based on the impact and severity of the reported bug.

Bull market

A market condition in which prices of assets are rising or expected to rise over a prolonged period, and investor confidence is high. The term "bull" comes from the metaphor of a bull attacking its prey by thrusting its horns up into the air.

Bull market index

A synthetic market that replicate bullish trends with constant volatility.

Bull trader

A bull trader is someone who believes that the market or a particular asset is going to experience an increase in value. This view is known as bullish, and it typically involves buying assets that the trader believes will increase in price.

Buy

The act of purchasing a financial instrument with a buy order, with the expectation that its value will increase in the future. When you buy an asset, you are taking a long position in that asset.

Buy limit

A pending order to buy a trading asset at a price lower than the current market price. Buy limit orders give you control over your entry points and help prevent you from overpaying for assets. However, the fulfilment of the order depends on market conditions and the availability of sellers willing to sell at or below the specified limit price.

Buy price (CFDs)

The price at which a buyer is willing to purchase an asset. Buy price is also known as the ask price, and it is typically displayed on the right side of a quote.

Buy price (Options/Multipliers)

The amount you pay to open a trade position. With options, you won’t ever lose more than this amount. Also known as a premium, it’s the price you pay to purchase an options contract. Factors that influence the buy price, including the asset price, strike, expiry time, market volatility, and interest rates.

Buy stop

A stop order that triggers a market buy order when the price trades at or above a specified stop price level. It is used to either close out short positions or enter new long positions if the price rises to the predefined trigger level.

Buy stop limit

A conditional order that combines a stop price and a limit price. When the market reaches the stop price, the order becomes a limit order to buy at or at better than the specified limit price, allowing you to control both the entry price and execution conditions.

Call option

An option trade contract that allows you to speculate on the price of an underlying asset without owning the asset itself. You’ll open a call option if you predict that the market price will rise by the end of a specific time period.

Candlestick

A type of chart used to display the price movements of an asset. For more information, check out this blog article.

Capital

The amount of money that is available for trading.

Central bank

A financial institution that is responsible for managing a country's monetary policy and regulating its banking system.

Closed position

A closed position is when you complete a trade by conducting an opposite transaction, which terminates your exposure, eliminating any further potential risk or profit or loss associated with the trading asset.

Closing price

Also known as close price, this refers to the last traded price of an asset at the end of a trading session.The closing price is often used as a key parameter in technical analysis.

Commission

The fee we charge for executing a trade on our trading platforms. The amount we charge depends on the asset, market conditions, and other factors.

Commodities

A commodity is a basic raw material that can be bought, sold, and traded on exchanges around the world.When trading commodities such as metals and energy on Deriv, you'll predict the commodity prices without owning the underlying asset.

Consolidation

This refers to a period of price movement in which the price of a financial asset remains within a defined price range, without making significant moves in either direction.

Consumer price index (CPI)

This index is an economic indicator that evaluates inflationary trends in the market, measuring changes in the prices of goods and services over time. It is used to track market inflation and to understand the purchasing power of consumers.As the prices of goods and services increase over time, the CPI will also rise, indicating a decrease in the purchasing power of each currency unit.

Continuous indices

A general term for indices. These indices are calculated and updated continuously to reflect real-time or near-real-time changes in underlying market conditions. They include both synthetic indices with constant volatility and derived indices based on actual market data.

At Deriv, continuous indices refer to simulated or market-based indices with constant or parameterised market conditions. One tick is generated either every second or every two seconds, depending on the index.

For example:

  • Volatility indices (10, 25, 50, 75, 100): one tick every 2 seconds
  • Volatility indices [10(1s), 25(1s), 50(1s), 75(1s), 100(1s)]: one tick every second
Contract duration

The time frame between the opening of a trade contract and its expiry. This can range from a few seconds to months or even years, depending on the trade type.

Contract for difference (CFD)

A type of trading that allows you to speculate on the rise or fall of an underlying asset and profit from the difference between the contract's entry price and exit price without actually owning the asset.

Contract size

The standardised quantity or volume of a financial instrument that is traded in a single contract.

For more information, check out our trading specifications.

Contract value

The current value of a trade contract based on the initial buy price and the current profit/loss. The contract value depends on the instrument type.

For CFDs, the contract value is determined by the size of the contract and the current price of the underlying asset.

For options, the contract value is influenced by the strike, the current price of the underlying asset, and the number of contracts held.

Conversion rate

The exchange rate used by a payment processor to convert funds from one currency to another, similar to currency exchange.

Copy trading

A trading strategy in which a trader can copy trades from others, typically more experienced and successful traders.

You can use this feature on Deriv MT5, Deriv cTrader and Deriv Nakala to automatically replicate the trades of your favourite expert traders.

Corporate account

An account that is opened and maintained by a company, to manage trading accounts and activities.

Crash/Boom Indices

These synthetic indices are designed to produce an average of one price drop (crash) or spike (boom) event in a series of 300, 500, or 1,000 ticks.

A "boom" market is when the price of the underlying asset is expected to rapidly increase, while a "crash" market is when the price of the underlying asset is expected to rapidly decrease.

You can trade multipliers and CFDs on these indices.

Crypto account

A trading account with cryptocurrency as the account currency.

You may have multiple cryptocurrencies accounts with Deriv, registered under a single email.

Cryptocurrencies

In trading, cryptocurrencies are digital assets that can be bought and sold on cryptocurrency exchanges. Unlike traditional currencies, they operate on decentralised, peer-to-peer networks, which means that they are not controlled by any central authority or government.

Cryptocurrency trading on Deriv involves speculating on the price movements of various digital currencies, such as Bitcoin, Ethereum, and Litecoin, without owning the underlying asset.

Crypto wallet

A digital wallet that allows traders to transfer cryptocurrencies into their Deriv crypto account and vice versa.

Crystallisation

The act of converting unrealised profits or losses into actual realised profits or losses by selling the assets.

Currency appreciation

Currency appreciation is when one currency gains value in relation to another currency in the foreign exchange market. This results in the ability of one unit of the appreciating currency to purchase more units of the other currency than before.

Currency depreciation

Currency depreciation happens when a currency loses its value compared to another currency in the foreign exchange market. This means that it requires more of the depreciating currency to buy one unit of the other currency than it did before.

Currency pair

A currency pair is the quotation of two different currencies, with the value of one currency being expressed in terms of the other.

Current stake

This refers to the current stake amount of a trade contract based on the current total profit/loss.

Cut-off time

The deadline by which a trade must be executed or submitted for processing within a specific trading day for it to be considered for that day's trading activities. The cut-off time may vary depending on the financial market traded.

Daily reset indices

A synthetic market that replicate bullish trends with constant volatility.

Day order

A type of order in financial trading that instructs a broker to buy or sell a financial instrument at a specified price during regular trading hours on a particular trading day. The order is valid for that day only and will expire at the end of the trading day if not executed.

Day trading

A trading strategy in which traders buy and sell trade within the same day, with the aim of profiting from short-term price movements. Day traders don't hold any trade positions overnight, and all trades are closed before the market closes for the day.

Deal

A trading deal is a transaction that is executed on the platform when an order is filled.

Deal cancellation

A multipliers feature that allows you to cancel trade contracts within a chosen time frame without losing your stake. We charge a small fee for this.

When deal cancellation is active:

  • Stop loss and take profit won’t be available. They will only be available once the deal cancellation period expires.
  • If the market price reaches the stop-out level before the deal cancellation's period expires, we’ll cancel your position and return your stake without profit or loss.
Deal cancellation duration

The time frame in which you can cancel a trade contract without losing your stake.

Deal cancellation fee

A fee we charge for the deal cancellation feature with multipliers. This fee may vary for every trade contract. You can see the fee amount when you choose deal cancellation before opening a position.

Deflation

A decrease in the general price level of goods and services over time. Opposite of inflation.

Demo account

A trading account that allows you to practise trading on Deriv using virtual funds. It is also referred to as virtual account.

Deposit

The action of transferring money from a payment account to the main trading account. Access your cashier to make a deposit.

Deposit limit

The minimum and maximum deposit limits set for a specific payment method that you can use to transfer funds into your Deriv trading account.Visit our payment methods page to learn more on the different minimum and maximum deposit limits for each payment method.

Deriv API

The Deriv Application Programming Interface (API) gives you access to all trading functionalities of our Deriv Trader platform and allows you to build your own trading application using the programming language of choice. You can earn commission on trades and payments performed by your clients via the apps you create with Deriv API.

Derivative

A financial contract whose value is derived from the underlying asset or security, such as stocks, commodities, currencies, or market indices. With this type of contract, you can speculate the price movements of these financial instruments without owning them.

Deriv Blog

The official trading blog of Deriv, providing market insights, trading tips, educational content, and updates on the platform.

Deriv Bot

This is a platform where you can build your own automated trading bot using drag-and-drop “blocks”, without needing any programming knowledge. Each block contains instructions that determine the bot's behaviour.

Deriv cTrader

A multi-asset trading platform offering CFDs. It has various features including copy trading, limit orders, stop orders, chart trading, and custom indicators to enrich your trading experience.

Derived FX

Derived FX indices are simulated assets with prices derived from the price movements of real major forex pairs. Our algorithms track real-world currency prices and dampen price fluctuations caused by news events and market sentiment.

Trading derived FX offers you the opportunity to trade on simulated assets that are based on major forex pairs at the volatility level of your choice.

Explore derived FX indices available on Deriv.

Derived indices

Derived indices is a market category that consists of Deriv's in-house developed trading assets. Currently, derived markets include synthetic indices, basket indices, and derived FX. These indices have asset prices derived from real-world and simulated markets.

Explore derived indices available on Deriv.

Deriv GO

Deriv’s mobile trading app that gives you access to the forex, derived indices, and cryptocurrencies market. Visit the the Deriv GO page to learn more about its features.

Deriv MT5

A popular multi-asset CFD trading platform, developed by MetaQuotes, that gives you access to the forex, stocks & indices, cryptocurrencies, commodities, ETFs, and derived indices markets. Visit the Deriv MT5 page to learn more about its features.

Deriv Nakala

Our mobile cross-platform copy trading app where you can follow and replicate the strategies of experienced traders, or share your own strategies as a provider. Visit the Deriv Nakala page to learn more about how it works.

Deriv P2P

A peer-to-peer deposit and withdrawal service for you to buy and sell Deriv credits in exchange for your local currency. Deriv credits can be used for trading activities on our platforms. It is currently available in selected countries only. Visit our FAQs to know more about Deriv P2P.

  • Deriv P2P is unavailable to clients residing in the EU.
Deriv Prime

Deriv Prime is a division of the institutional trading services of Deriv Group, offering liquidity solutions and global market access through a single integration point for institutional clients.

Deriv Trader

A powerful yet easy-to-use trading platform, giving you access to the forex, commodities, cryptocurrencies, and indices market. Visit the Deriv Trader page to know more about it.

DEX Indices

DEX indices reflect simulated markets where asset prices react swiftly to news events, characterised by frequent small movements and occasional significant spikes or drops every 600/900/1500 seconds on average.

Digital options

A derivative trading product that allows you to predict the market price movement from 2 possible outcomes. For example, rise or fall. You’ll earn a fixed payout if your prediction is correct. If the market price doesn’t move in your favour, you won’t lose more than your stake. Learn more about the digital options available on Deriv.

Digits - Even/Odd

A digital options trade contract that lets you predict whether the last digit of the last tick will be an even or odd number. View the digital options available on Deriv.

Digits - Matches/Differs

A digital options trade contract that lets you predict whether the last digit of the last tick will match a number you choose. View the digital options available on Deriv.

Digits options

A trading product that allows you to speculate on the last digit of the last tick of a trade contract. View the digital options available on Deriv.

Digits - Over/Under

A digital options trade contract that lets you predict whether the last digit of the contract's last tick will be higher or lower than a number you choose. View the digital options available on Deriv.

Divergence

Divergence is a situation where the price of an asset moves in a different direction than an indicator or oscillator that is commonly used to analyse the asset's price movements.

Diversification strategy

A risk management technique that involves trading a variety of assets or securities in order to reduce the overall risk of a trading portfolio.

Dividend

A distribution of a portion of a company's profits to its shareholders. It is usually paid out in cash or additional stock shares.

Dormant fee

The fee applied to Deriv trading accounts that have been inactive for a year. If the account remains inactive after the initial deduction, a fee will be charged every six months until the account is active again.

Downtrend

A market condition where an asset's price is consistently decreasing over a period of time.

Drawdown

A measure of how risky an investment is by looking at how much it goes down. It shows, in percentages, how much a trading account or portfolio loses from its highest value to its lowest.

Drift Switching Indices

One of the types of synthetic indices that simulate market trends, encompassing three regimes:

  • Positive drift (bullish trend)
  • Negative drift (bearish trend)
  • Driftless (sideways trend)
DXY (US Dollar Index)

A global benchmark that tracks the value of the US dollar against a basket of six major currencies (EUR, JPY, GBP, CAD, SEK, CHF). It is widely used to measure the strength of the dollar and its impact on global markets. It's available to trade on Deriv MT5 Financial account as DXYUSD.

End time

The time when a trade contract expires.

Energy

Energy refers to the commodities used to generate power, such as crude oil, natural gas, gasoline, and heating oil. Deriv offers Brent crude oil and West Texas Intermediate for trading. Explore the commodities available on Deriv.

Entry spot

The market price when you open a position. It is the first tick at or after the start time of your trade contract.

Equilibrium

A state of balance between the supply and demand of a particular trading asset.

Equities

In trading, equities refer to stocks that are publicly traded on a stock exchange. They represent ownership in a company and are bought and sold on exchanges like the New York Stock Exchange (NYSE) or NASDAQ. View the stocks available on Deriv.

Equity

The current value of your CFD trading account in Deriv MT5. It is the sum of the account's balance and any floating profit or loss on open trades.

Europe 50 (SX5E)

The Europe 50 (also known as the EURO STOXX 50 Index) tracks the performance of the 50 largest and most liquid companies listed in 18 European countries that use the euro as their currency.

European indices

European indices replicate the performance of the leading publicly traded companies in the financial markets across Europe. View the European indices available on Deriv.

European options

A derivative contract that can only be exercised on its expiry date. Some examples of this trade type that we offer are Up/Down and Digits.

Exchange

In trading, an exchange is a marketplace where financial assets, such as stocks, indices, and currencies, are bought and sold.

Exchange rate

Exchange rate is a currency value expressed as the value of another currency.

Exchange-traded fund

Also known as ETFs, exchange-traded funds are a type of investment fund traded on a stock exchange designed to track the performance of a specific index or basket of assets, such as stocks, bonds, commodities, or currencies. View the ETFs available on Deriv.

Execution

The process of completing a trade once an order to buy or sell a financial instrument has been submitted. It is carried out by a trading broker.

Exhaustion

A situation where asset price movement becomes unstable, signalling an imminent trend reversal.

Exit spot

The market price when you close a trade position. It is the last tick at or before the end time of your trade contract.

Exit time

The time at which an option contract is closed.

Exotic pairs

Forex exotic pairs are currency pairs that are not commonly traded in the forex market. These pairs typically consist of a major currency, such as US dollar, Euro, or Japanese yen, paired with a currency from a developing or emerging economy. View the forex exotic pairs available on Deriv.

Expiration time

The time at which a pending order will be cancelled if it has not been executed.

Exponential moving average (EMA)

A type of moving average that is calculated by placing greater weight and significance on recent price data, making it more responsive to recent price changes than other moving averages.

FED

The Fed refers to the Federal Reserve Bank, the central bank of the US, or the FOMC (Federal Open Market Committee). This is the central banking system of the US that is responsible for implementing monetary policy, supervising and regulating banks, maintaining stability in the financial system, and providing certain financial services to the U.S. government.

Fiat account

A trading account with fiat currency as the account currency.

Fiat currency

A currency issued by central banks and governments, whose value is determined by the country's economic stability. For example, the US dollar, euro, and Japanese yen.

Fiat onramp

A cashier service that enables you to add funds to your Deriv crypto account using a fiat currency payment account. Read our detailed guidelines on fiat onramp payment methods here.

Fibonacci retracement

A technical analysis tool used in trading to identify potential levels of support and resistance in a financial asset's price movement. It is based on the idea that after a price move, prices tend to retrace a predictable portion of that move before continuing in the original direction.

Fill

The execution of a trade order at a specified price. When an order has been completed, it is often referred to as ‘filled’. There is no guarantee that every trade will become filled.

Financial assessment

An assessment to evaluate your financial health and performance. It involves analysing your source of income and wealth to determine your net worth and overall financial position.

Financial instrument

A type of trading asset that holds the potential to generate future cash flows or other valuable economic benefits. This can include stocks, commodities, forex, and other assets.

Financial market

A trading marketplace where buyers and sellers come together to trade financial instruments such as stocks, commodities, and derivatives.

Financial STP

Financial straight-through processing (STP) means that trade orders are sent directly to liquidity providers, such as banks or other brokers, without any interference from a dealing desk. This automates the settlement processes and reduces the likelihood of errors and delays.

Floating exchange rate

A type of exchange rate system where the value of a country's pricing system is determined by the supply and demand in the foreign exchange market. It is also known as flexible exchange rate.

FOMC

The Federal Open Market Committee (FOMC) is a committee within the US Federal Reserve that implements monetary policy and influences the supply of money and credit in the economy.

Forex

Forex is short for foreign exchange. Forex trading, also known as currency trading or FX trading, is the process of buying and selling different currencies from around the world. It is a global decentralised marketplace where currencies are traded 24 hours a day, five days a week (Mondays to Fridays). View the forex pairs available on Deriv.

Forward contract

A predetermined trading contract to buy or sell an asset at a specified price and date in the future. It is also known as a trading agreement.

France 40 (FCHI)

Also known as CAC 40 (Cotation Assistée en Continu), this index tracks the performance of the 40 most actively traded companies listed on the Euronext Paris Stock Exchange.

Free margin

The amount of funds available in a trader's account that can be used to open new trading positions or absorb losses. By keeping track of your free margin, you can ensure that you have enough available funds to maintain your trades and withstand market fluctuations.

Fundamental analysis

The process of asset valuation which involves analysing the underlying macroeconomic fundamentals and financial factors of an asset. It is often used in combination with technical analysis. For more information, check out this blog article.

Germany 40 (GDAXI)

Also known as the DAX (Deutscher Aktienindex), the Germany 40 index tracks the performance of the 40 largest and most actively traded companies listed on the Frankfurt Stock Exchange.

GMT

Greenwich Mean Time (GMT) is the average solar time zone at the Royal Observatory in Greenwich, London. The GMT time zone is often used as a reference time for the entire world and is sometimes called Universal Time Coordinated (UTC) or Coordinated Universal Time (CUT). Deriv uses GMT all year round.

Gross profit

Refers to a trader's profit before factoring in any costs. This is the profit that you earn from a trade before considering costs such as fees and commissions.

GTC order

A Good Till Cancelled (GTC) order is a trade order used in financial markets. When you place a GTC order, you are instructing your broker to keep your trade active until it is executed or until you manually cancel it.

Hedging

A trading strategy used to reduce the risk of adverse price movements by taking an offsetting position in a related asset.Hedging can help protect against potential losses, but it may also limit potential gains.

High barrier offset

A feature in the In/Out digital options trade type that allows you to set a high limit on the price of an underlying asset. The high barrier offset value depends on your trading strategy, risk appetite, and market conditions.

High/Low ticks options

A digital options trade contract that allows you to predict the highest or lowest tick in a series of 5 ticks. View the digital options available on Deriv.

Hybrid Indices

Synthetic instruments that combine the jump behaviour of Crash/Boom Indices with the structured volatility of Volatility Indices. They create a more realistic market environment by mixing predictable patterns with added volatility.

Indicative price

The indicative price is the current payout if you sell your contract before it expires. It’s calculated based on the current market price and expiry time. It is useful for assessing market trends and making trading decisions, and can help you gauge the market direction and potential entry and exit points for your trades. This price isn’t a guarantee of your actual payout. Since it's subject to market fluctuations, the actual execution price may differ.

Indicator

A mathematical calculation tool used to analyse the price movements of an asset and provide traders with insights into the asset's potential future price direction.

Indices

Indices, or stock indices, are a collection of stocks that represent a particular market or sector. View the stock indices available on Deriv.

Inflation

A continuous rise in the overall prices of goods and services within an economy over a period of time. Inflation is measured by the Consumer Price Index (CPI).

In/Out - Ends Between/Ends Outside

A digital options trade contract that allows you to predict if the market price will end in or out of the trade barriers. View the digital options available on Deriv.

In/Out options

A trading product that allows you to predict if the market price will stay in or out of the barriers. You set high and low barriers and get a payout if the market price moves in your favour.

Two types of In/Out trade types we offer are Ends Between/Ends Outside and Stays Between/Goes Outside.

View the digital options available on Deriv.

In/Out - Stays Between/Goes Outside

A digital options trade contract that allows you to predict if the market price will stay between or go out of the barriers. View the digital options available on Deriv.

Instrument

A specific financial asset or security that can be bought or sold in trading.

In the money

A situation where the current market price of the underlying asset is favourable to the options contract holder, making the option valuable for buying or selling at a more favourable price compared to the current market price.

Intrinsic value

The value of an option determined by the difference between the current market price of the underlying asset and the option's strike.

Introducing broker

Deriv's business partner who earns commissions from bringing in new clients to trade on Deriv's CFD trading platforms. Learn more about the Deriv IB programme here.

Japan 225

Also known as the Nikkei 225 index, this stock index tracks the performance of 225 large, publicly-owned companies listed on the Tokyo Stock Exchange.

Jump indices

Jump indices correspond to simulated or synthetic markets with constant volatilities of 10%, 25%, 50%, 75%, and 100%. There is an equal chance of an up or down jump every 20 minutes, on average. The jump size is around 30 times the normal price volatility, on average.

Know your customer (KYC)

A process to verify the identity of clients and assess their risk levels to mitigate risk and adhere to compliance regulations. In Deriv, the KYC documents requested may include proof of identity, proof of address, and proof of wealth.

Large cap

A measure of the total value of a company's outstanding shares of stock with a market capitalisation of 10 billion USD or more. It is also referred to as "big cap".

Leverage

Leverage lets you hold larger market positions than what your initial capital would allow. This way, you would amplify both your potential profits and losses.

For example, a leverage ratio of 1:1000 means that Deriv provides 1,000 USD in trading capital for every 1 USD you deposit. This gives you greater market exposure but at the same time increases your risk if trades don't go as expected.

The higher the leverage ratio, the more capital you can command with your own equity deposit. While higher leverage has the potential to magnify profits, it also comes with the risk of bigger losses if trades don't go your way. You should consider if the risk tolerance and capital that come with the leverage levels suit your trading style and goals.

For more information, check out this blog article.

Limit order

A type of order to buy or sell a security at a specific price or better. When you place the order, it will only be executed if the asset price reaches the limit price specified.

Liquidity

Liquidity in trading refers to the degree to which an asset can be bought or sold in the market without causing a significant impact on its price. Higher liquidity indicates a more active market, and narrower spreads between bid and ask prices, allowing traders to enter or exit positions smoothly and at stable prices.

Liquidity provider

A trading institution that participates in financial markets by providing liquidity or the ability to buy or sell a particular asset, security, or currency pair.

Liquidity risk

The possibility that an asset such as a stock, bond, or other financial instrument cannot be quickly sold or converted into cash without causing a significant loss in value due to market liquidity.

Long position

A trading position where you buy instruments in the expectation that their value will increase.

Lookback - Maximum multiplier

The highest multiplier amount that you can choose to amplify your potential payout with lookback contracts.

Lookback - Minimum multiplier

The lowest multiplier amount that you can choose to amplify your potential payout with lookback contracts.

Lookbacks - Close-Low

A digital options contract that allows you to earn the difference between the contract's lowest and closing ticks multiplied by the multiplier of your choice. Learn more about lookbacks on Deriv.

Lookbacks - High-Close

A digital options contract that allows you to earn the difference between the contract's highest and closing ticks multiplied by the multiplier of your choice. Learn more about lookbacks on Deriv.

Lookbacks - High-Low

A digital options contract that allows you to earn the difference between the contract's highest and lowest ticks multiplied by the multiplier of your choice. Learn more about lookbacks on Deriv.

Lookbacks - Multiplier

A feature in the lookbacks contract type that allows you to set a multiplier amount to amplify your potential payout. The multiplier amount is in the same currency as your trading account.

Lookbacks options

A trading product that allows you to earn the difference between 2 ticks multiplied by the multipliers of your choice.

The lookback options we offer are:

  • High-Close
  • High-Low
  • Close-Low

Learn more about lookbacks on Deriv.

Loss condition

A situation where the value of a trade decreases, leading to a financial loss. This occurs when the price of the asset being traded moves in a direction that is unfavourable to the trade's position. It is often referred to as trade loss or loss trading.

Lot size

The amount of units or contracts of an asset that are being bought or sold in a single trade. It is used to determine the trade volume.

Low barrier offset

A feature in the In/Out contract type that allows you to set a lower limit on the price movement of the underlying asset.

You set the low barrier offset based on market conditions and your risk tolerance.

Major pairs

Forex major pairs, or forex major currency pairs, are the most commonly traded currency pairs in the forex market. These pairs are made up of the currencies of the world's most developed economies, and are highly liquid with high trading volumes and narrow bid-ask spreads.

View forex major pairs available for trading on Deriv.

Margin

A margin is the amount of funds (expressed in the trader's account currency) required for opening and keeping a leveraged position open.

Margin calculator

A trading tool to calculate the margin required to increase your market exposure.

Margin call

A request from a broker for a trader to deposit more funds into their trading account to maintain the lowest level of margin required. When you receive a margin call, you should take immediate action to address it.

Margin deposit

The amount of funds you'd need to put in to open a leveraged trading position or to maintain the required margin for all your trading positions.

The margin deposit amount for each trade is calculated based on the size of the position, leverage, and any other margin requirements. Financial instruments may have different margin requirements depending on their volatility and liquidity.

Margin requirement (%)

The percentage of funds that you must have in your trading account in order to open or hold a position. Margin requirement is calculated as below:

Required margin = (volume × contract size × asset price) ÷ leverage

For more information, check out this blog article.

Market

The platform where various financial instruments such as stocks, currencies, commodities, and derivatives are bought and sold. It is also also known as a trading market or trade market.

Market capitalisation

A financial metric that measures the total market value of a publicly traded company's outstanding shares of stock, also known as market cap. The market capitalisation formula is calculated by multiplying the company's current stock price by the total number of outstanding shares.

Market data

The real-time information about market activity, such as pricing, trading volume, bid and ask, quotes, and other relevant trading statistics. You can use market data to monitor trends, assess conditions, and make informed trading decisions.

Market execution

Market execution in MT5 means executing a trade at the best available market price. You may get a different price than the one you intended if the market moves quickly.

Market exposure

The degree to which market fluctuations can affect you. It can be measured by considering various things, such as your investment size, how much the asset's price moves, and how long you intend to hold the trade.

Market maker

A financial institution or individual that offers both a buy and a sell price for a security and facilitates trading by providing liquidity to the market. Market makers play a crucial role in maintaining an orderly and liquid market.

Market value

The price at which a financial instrument can be bought or sold on the open market at a particular time. It represents the current asset value based on the interaction of buyers and sellers in the market.

Martingale strategy

A trading strategy that doubles the position size after each loss. While it aims to recover the previous losses, it also increases your potential losses.

Maximal volume

The maximum amount of a financial instrument that you can trade in a single order.

Maximum barrier

The highest price target a trader can set on an option contract.

Maximum daily volume

The highest number of shares, contracts, or units of an asset traded within a single trading day, reflecting the level of trading activities. It provides insight into the liquidity and activity of a particular asset, helping you assess market conditions and potential price movements.

Maximum duration in ticks

The maximum allowed time for holding an options contract, measured in ticks.

Maximum effective leverage

The highest amount of borrowed funds or leverage when executing trades. Knowing the maximum leverage allows you to assess your risk exposure and help control potential losses.

Maximum open positions

The maximum number of trading contracts that you're allowed to have open at any given time.

Maximum payout

The maximum potential profit that you can earn on the trade.

Maximum stake

The maximum amount of stake that you can invest to open an options contract.

Maximum strike

The maximum number of strikes available for you to choose.

Metals

Metals refer to precious metals, such as gold, silver, platinum, and palladium, as well as industrial metals, such as copper, aluminum, zinc, and nickel. View metals offered on Deriv.

Micro pairs

Forex micro pairs, or forex micro, are forex currency pairs that allow traders to trade in smaller lot sizes than standard forex pairs. On Deriv, 1 micro lot is equal to 1,000 units.

Mid cap

A measure of the total value of a company's outstanding shares of the stock price with a market capitalisation between 2 to 10 billion USD.

Minimal volume

The minimum amount of an instrument that you can trade in a single order.

Minimum barrier

The minimum distance from spot price available to choose as the strike.

Minimum size

The smallest position size or contract size that can be entered when making a trade. By knowing the minimum size, you can assess if you have sufficient capital to meet the requirements of a specific trade.

Minimum spread

The smallest possible difference between the bid price and ask price of a financial instrument.

Minimum stake

The minimum amount of stake you must invest to open an options contract.

Minor pairs

Forex minor pairs, or cross currency pairs, are currency pairs that do not include the US dollar as one of its components. Instead, it is made up of two other major currencies, such as the euro, Japanese yen, or British pound. These pairs are less frequently traded than major currency pairs, and typically have wider bid-ask spreads and lower market liquidity.

View the forex minor pairs available on Deriv.

Moving average

A technical analysis tool that calculates the average price of trading assets over a particular period. It is used to identify market trends and potential support or resistance levels.

Moving average convergence divergence (MACD)

A technical analysis indicator that identifies a financial asset's potential price trends and reversals. It shows the relationship between two exponential moving averages (EMAs) of an asset's price.

MT5 Signal

MetaTrader 5 signals is a service that lets users copy trades from experienced traders or share their own strategies for a subscription fee.

MT5 Zero spread account

A type of trading account offering zero spread and 0 pips, allowing trades to be executed at market prices with no difference between bid and ask prices.

Multiplier

The multiplier rate that you choose to amplify your potential profit. The multiplier rate varies for every asset.

Multipliers

Multipliers is our leveraged derivative trading product with limited risk. Your potential profit is amplified when the market moves in your favour. You won't lose more than your stake when the market moves against your prediction.

Learn more about multipliers on Deriv.

Multipliers - Maximum multiplier

The highest multiplier rate that you can choose to amplify your potential profit.

Multipliers - Minimum multiplier

The lowest multiplier rate that you can choose to amplify your potential profit.

Multipliers - Multiplier range

The range of multiplier rates that you can choose to amplify your potential profit.

Multipliers PnL calculator

The multipliers profit and loss calculator, or multipliers PnL calculator, is a trading tool to estimate the level and amount of the stop loss and take profit for multipliers contracts.

Multipliers - Up/Down

A multipliers contract type where you predict whether the price of an underlying asset will be higher or lower than the entry spot at the end of the contract period.

If you select 'Up', you'll earn a profit when the exit spot is higher than the entry spot.

If you select 'Down', you'll earn a profit when the exit spot is lower than the entry spot.

Multi Step Indices

A type of Step Index that uses multiple step sizes within the same instrument. Price usually moves in small increments, with occasional larger steps that add flexibility and moderate volatility.

Negative balance protection

A risk management tool offered by some brokers to protect traders from losing more than their account balance.

On Deriv, if your MT5 Derived account balance becomes negative due to stop out, your account balance will be automatically brought back to 0.00 in your account currency.

Negative balance protection is designed to cover trading losses and does not provide protection against other charges or fees, including overnight financing costs or trading commissions. The applicability of this tool may vary based on your country of residence, as it is subject to local regulations.

Netherlands 25 (AEX)

Also known as the Dutch Stock Market Index, this index tracks the performance of the 25 most actively traded companies listed on the Euronext Amsterdam Stock Exchange.

Net profit

The trading gains or total profit you earn on a trade after deducting all costs, such as fees and commissions.

On-balance volume (OBV)

A mathematical calculation tool used to analyse and predict the future price movements of an asset.

Only Ups/Only Downs Options

A digital optons contract type that allows you to predict a successive rise or fall in the market price. View the digital options available on Deriv.

Open position

An active trade that still has not been closed.

Options trade type

A specific type of options contract that you can choose to buy. For more information, check out this blog article.

Order

A request to buy or sell a financial instrument at a specific price.

Oscillator

A type of technical indicator used to identify potential market turning points by signaling when a financial instrument is losing momentum.

Out of the money (OTM)

A situation where the current market price of an underlying asset is not favourable to the option holder. An option is considered out of the money if it does not have intrinsic value, meaning it would not result in a profit if exercised at the current market conditions

Overexposure

A situation where you hold a position in a specific financial asset that exceeds your risk appetite, trading capital, or diversification strategy.

Over-the-counter (OTC) trading

The buying and selling of financial instruments that are not traded on a centralised exchange but directly between two parties, such as banks, corporations, or individual investors.

Parameters

The specific values or settings that define a particular trading action giving you more control over your trading. This includes risk management features such as stop loss, take profit, and deal cancellation.

Payment method

A way to make deposits into or withdrawals from your trading account. Learn more about Deriv's deposit and withdrawal payment methods.

Payout

The amount you are paid if your prediction is correct. It’s the sum of your initial stake and profit.

Payout limit

The maximum potential profit you can earn from an option trade.

Pending order

An order to buy or sell a security at a specific price, but it isn't placed in the market immediately. The order is held by the broker and is executed when the market reaches the specified price.

Pip

Pip, or percentage in point, is a standard unit used to measure how much the asset value changes. When an asset has a quote with five or three decimal places, we use a smaller unit called a 'pipette'. A pipette is one-tenth the size of a pip. Pipettes help measure smaller price movements more accurately.

For more information, check out this blog article.

Pip calculator

A trading tool to determine the pip value of a trade.

Knowing the value of each pip in a trade is important because it can help you understand the possible risks and rewards involved. By using this information, you can set appropriate stop loss and take profit levels, and adjust your position sizes accordingly.

Pip value

Refers to how much 1 pip is worth, which is the smallest value change in a currency's exchange rate. For more information, check out this blog article.

PnL for margin calculator

The profit and loss margin calculator, or PnL margin calculator, is a trading tool to estimate the stop loss and/or take profit levels as well as the pip value.

This calculator can help you determine the potential profit or loss on the trade. However, it's worth noting that results from the calculator are estimates and may not account for unforeseen market fluctuations or slippage.

Portfolio

A collection of trading assets that are held by a trader.

Position

The specific trade that you hold in a particular financial instrument, such as stocks, commodities, currencies, or derivatives. It shows how much you are affected by the price movements of that instrument when there's any open trading position.

Position trading

A trading strategy in which positions are held for weeks to months or even years for long term investment.

Post market

The period of trading that occurs after the regular market has closed for the day. It is also known as after-hours trading.

Potential profit/loss

An estimate of the profit or loss based on the current market price of the underlying asset and the current value of the options contract. It is not realised until you choose to exercise or sell the trade contract before expiry time.

Pre-market

The period of trading that occurs before the regular market opens for the day.

Profit

The amount you earn after deducting any associated costs from your trades. It is the difference between an asset's buy and sell price or a trade's opening and closing price.

Profit factor

A financial metric that compares the total profits generated by successful trades to the total cost incurred by losing trades.

Proof of address (POA)

A type of document used to confirm a person's current country of residence. A proof of address can include a variety of documents, such as a utility bill or bank statement.

Proof of identity (POI)

A type of document used for identity verification. A proof of identity can include a variety of documents, such as a government-issued ID card, passport, or driver's licence.

Proof of ownership (POO)

A type of document used to confirm a person's ownership of the payment method used in a transaction. A proof of ownership can include a variety of documents that consist of the person's full name and account details.

Proof of wealth (POW)

A type of document used to confirm a person's financial position. A proof of wealth can include variety of documents such as a payslip, tax return, or savings plan.

Pullback

A temporary trading reversal or retracement that occurs within a larger price trend.

Put option

A type of financial derivative that pays an amount if the asset's price is below the strike at expiration. The payout depends on the difference between the final price and the strike. Also referred as a type of vanilla option.

Read more about vanilla options on Deriv.

Quantitative easing (QE)

An economic policy in which a central bank buys large quantities of financial assets to increase the money supply and lower the interest rate to encourage lending and invesment.

Quote currency

The second currency or counter currency listed in a currency pair. It is the currency that is being used to quote the value of the base currency.

Quote price

The current market price of a financial instrument. It represents the latest bid and ask prices available in the market. This price is continuously changing in response to market demand and supply.

Rally

A period of sustained upward movement or increase in prices of a particular financial instrument over a short to medium term period. It is driven by positive factors and a bullish sentiment.

Range

The spread or difference between the highest and lowest asset prices within a certain period of time. It is also known as trading range.

Range break indices

Indices that fluctuate between two price points (borders), occasionally breaking through the borders to create a new range, on average once every 100 or 200 times that they hit the borders.

Real account

A trading account that allows traders to trade with real money. It is also known as a live account or a funded account.

Reference ID

A unique identifier assigned to a particular trade or financial transaction.

Relative strength index (RSI)

A technical analysis indicator used in trading to measure the magnitude and speed of price movements in a financial asset. This momentum indicator is primarily used to identify overbought or oversold conditions in an asset.

Reset Call/Reset Put options

A trading product that lets you predict if the exit spot will be higher or lower than the entry spot or the spot at reset time.

Resistance level

A term used in technical analysis to refer to a price level where the upward movement of an asset is expected to stop or reverse due to selling pressure.

Retail price index (RPI)

An economic indicator that measures inflation in the UK economy by tracking the rate at which prices of goods and services are rising.

Return

The profit or loss usually expressed as a percentage of the initial investment or stake.

Reversal

A change in the direction of a price trend.

Risk

The various factors or events that could lead to a loss of capital.

Risk apetite

A measure of how much risk you are willing to take in your trading activities to achieve higher potential returns.

Risk management

The process of identifying, assessing, and mitigating potential risks that could result in financial losses. This includes strategies like setting stop loss orders in option trading and determining optimal position sizing.

Risk-reward ratio

A metric used to measure the potential profit in relation to the potential loss, enabling you to assess and effectively manage risk.

Risk tolerance

The level of risk you are willing to endure in your trading decisions.

Rollover

The process of extending the settlement date of an open position in a financial instrument to a future date.

Scalping

A trading technique that involves making multiple trades within a short time. The scalping trading strategy usually lasts from a few seconds to a few minutes to profit from small price movements.

Security

Financial instruments representing ownership or creditorship in public trading companies or organisations. For example, stocks and options.

Self exclusion

A risk management tool you can use to control the amount of money and time you spend trading on Deriv. This is to promote responsible trading and prevent potential financial losses due to emotional trading decisions.

Sell

The act of disposing of financial instruments such as stocks, bonds, or commodities through a sell order if you expect its value to decrease in the future. This strategy can involve both short selling and long selling.

Sell early option

An option that allows for early termination of a contract, but only when a fair market price can be established, reducing potential loss. When the 'Sell early' option is available, you will find a 'Sell' button within the trade's pop-up window and in Reports. This option provides flexibility before contract expiry.

Sell limit

A pending order to sell an asset at a price higher than the current market price.

Sell price

The price at which a seller is willing to sell an asset. Also known as the ask price, it is typically displayed on the right-hand side of a quote.

Sell stop

A pending order to sell an asset at a price lower than the current market price.

Sell stop limit

A conditional order that combines the features of a sell stop order and a sell limit order.

When a sell stop limit order is placed, it will only become a sell limit order once the specified stop price is reached or breached. Once the stop price is reached, the sell limit order becomes active and is executed at the limit price or better.

Sharpe ratio

A financial metric used to assess the return of a trading strategy in relation to its risk.

Shortfall risk

A type of financial risk that occurs when an investment portfolio or asset fails to meet anticipated performance, leading to a shortfall risk in the expected returns.

Short position

A trading position where a trader sells a financial instrument that they have borrowed in the expectation that its value will decrease.

Simple Moving Average (SMA)

A type of moving average that shows the average price of an asset over a specified period. SMA is calculated by adding up the closing prices of an asset over a given time and dividing the sum by the number of periods.

Skew Step Indices

Step-based synthetic indices that feature uneven steps and tend to favour one direction. They move more often in one direction while occasionally making larger moves in the opposite direction, creating dynamic but structured trading conditions.

Slippage

The difference between the expected trade price and the price at which the trade is actually executed.

Small cap

A measure of the total value of a company's outstanding shares of stock and refers to companies with a market capitalisation between 300 USD million and 2 USD billion.

SmartTrader

Deriv’s user-friendly trading platform used for digital options trading. The platform is accessible via desktop and mobile browsers.

Speculating

The act of taking positions in derivative markets to make profits based on expectations of future price movements.

Spot price

The current market price of an underlying asset.

Spot Volatility Indices

Synthetic indices where volatility changes in direct relation to the spot price. For every 100-point move in spot, volatility shifts by 1 percentage point. Both indices start at 10,000 with 100% volatility, bounded between 10% and 200%. This structure provides traders with transparent and rule-based volatility changes that mimics real market volatility patterns.

Spread

The difference between the bid price and ask price.

A variable spread refers to a spread that changes with the market conditions, while a fixed spread is where the spread is unaffected by market conditions but could be altered by the broker.

Stable Spread Instruments

Trading products designed to keep the difference between buy and sell prices steady throughout the day. They use advanced statistical analysis to maintain stable spreads even during volatile news periods, giving traders more cost transparency.

Stake

The amount you pay to open a trade position. With option trading, you won’t lose anything more than your stake with each position.

Start time

The time when our servers process and start your trade contract.

Statement

An account statement is a report that provides a summary of your trading activitities during a specific period of time.

Step index

This index features a fixed step size of 0.1 in the price series, with an equal probability of up/down movements.

Step index is available to trade via options, multipliers, and CFDs.

Stock index

A statistical measure that tracks the performance of a specific group of publicly traded companies or a particular segment of the stock market.

Stocks

Stocks, also known as shares or equities, represent the ownership of a fraction of the issuing corporation. Stock trading on Deriv doesn't require the buying or owning of the underlying stocks.

Stop loss

A risk management feature that allows you to set the maximum level of potential loss you are willing to tolerate if the market moves against your prediction. When the market value falls to the set stop loss level, your trade will be automatically closed.

It's important to consider slippage when setting the stop loss level, as prices may fluctuate during execution.

Stop order

A stop order, or stop-loss order, is a type of order that is placed by a trader to buy or sell an asset once it reaches a certain price level, known as the stop price. The stop price is set at a level that is worse than the current market price for a sell order, and better than the current market price for a buy order.

Stop out

A margin call that occurs when the value of your account falls below the minimum margin requirement we have set to maintain the open positions.

Stop out level

A predetermined margin level at which we will automatically close your open positions.

Strike

The specifiied price set by trader at which the underlying asset can be bought or sold in an option contract by the option contract holder when it is exercised.

Support level

A term used in technical analysis to refer to a price level where the downward movement of an asset is expected to stop or reverse due to buying pressure. Support level is the opposite of resistance.

Swap calculator

A trading tool to estimate the swap rate required to keep positions open overnight. Calculate swap rate with our Swap calculator.

Swap-free

A type of trading account that isn't charged interest on positions held overnight. This account is available on Deriv MT5.

Swap long

The swap rate associated with holding a long position (or buy position) in a financial instrument overnight.

Swap rates

A fee adjustment applied to your trading account to compensate for the cost of keeping overnight positions.

Swap short

The swap rate associated with holding a short position (or sell position) in a financial instrument overnight.

Swing trading

A trading strategy in which positions are held for several days to weeks taking advantage of price swings in the market.

Swiss 20 (SSMI)

This stock market index tracks the performance of the 20 largest and most liquid companies listed on the SIX Swiss Exchange.

Symbol

A unique identifier used to represent a particular trading asset or instrument on a trading platform.

Synthetic indices

A category of our derived indices that's available for trading 24/7. They simulate real-world markets but aren't affected by global events and liquidity risks.

Tactical Indices

Algorithm-driven instruments that track the performance of predefined trading strategies. Each index follows a set of technical rules, and its price rises or falls depending on how well the strategy performs.

Learn more about Tactical Indices on Deriv.

Take profit

A feature that allows you to set your targetted level of profit to maximise in the event the market moves in your favour. When the market value reaches the set amount, the trade will be closed automatically and the earnings will be deposited into your account.

Target spread

The expected difference between the bid price and the ask price of a financial instrument.

Understanding the target spread is important for assessing trading costs, evaluating profitability, and managing risk effectively. To learn more, check out our trading specifications.

Technical analysis

Technical analysis in trading is a method of evaluating and predicting price movements in financial markets by analysing historical market data. It is often used in combination with fundamental analysis.

For more information, check out this blog article.

Tick

Tick in trading refers to the minimum upward or downward movement in the asset price.

Total profit/loss

The total profit or loss of your trade contract based on the current market price.

Touch/No Touch options

A trading product that allows you to predict whether the market price will touch the barrier that you set.

Trader's Hub

A comprehensive dashboard that integrates all of Deriv's trading platforms, enabling you to easily manage and conduct trades across them.

Trade table

An essential tool that tracks and documents trading activities you have executed to measure your overall trading performance.

Trade type

This refers to the different types of trades you can choose on Deriv. On Deriv, you can trade CFDs, options, and multipliers on various financial instruments without buying the underlying instrument.

Options trading is unavailable to clients residing within the EU.

Trading account

An account created by a trader to engage in trading activities on Deriv's trading platforms. Deriv allows you to have multiple trading accounts, with different account currencies, trade types, and jurisdictions for the use of options, multipliers, and CFD trading.

Options trading is unavailable to clients residing within the EU.

Trading limits

The fixed limits placed on a trading account to control the amount of risk you can take and the extent of your market exposure, including open positions. These limits can apply to various trading activities, and helps you manage your investments within defined boundaries.

Trading plan

A trader's strategy to systematise their approach to trading.

Trading specification

A detailed description of the specific parameters and requirements for executing trades on a particular trading platform.

For more information, check out our trading specifications.

Trading times

Trading times refer to the specific time periods during which a particular trading instrument is available for trading.Knowing the trading hours is vital to plan your trading activities effectively, take advantage of market opportunities, and manage risk. For more information, check out our trading specifications.

TradingView

A trading analysis tool offering advanced charting, technical indicators, and analytical features to help users make informed trading decisions.

Transfer

The action of transferring money from between our trading platforms.

You can perform the transfer through your cashier here.

Trek Indices

Synthetic indices built on an asymmetric Weibull distribution with controlled volatility of about 30 percent. They are available in two forms: Trek Up, which favours upward moves, and Trek Down, which favours downward moves.

Trend

The general direction of an asset's price movement over a certain period of time. You can use trend analysis to identify chart patterns and potential opportunities for profit.

Trendline

A trendline is a line drawn on a price chart that connects two or more price points, used to identify the direction of a trend and potential support/resistance levels.

Turbo options

Turbo options is a trading product enabling traders to forecast the movement of an underlying asset within a predefined price range.

You'll receive a payout at the expiry of the contract if the spot price remains within the specified barrier without touching it during the contract period.

Two-factor authentication (2FA)

A security feature that requires you to provide two forms of verification before accesssing your trading account or executing transactions. 2FA involves inputting a password or PIN and using a code from a mobile app like Authy or Google Authenticator to reduce the risk of unauthorized access.

UK 100 (FTSE)

The Financial Times Stock Exchange 100 Index (the "Footsie"). It tracks the stock performance of the top 100 companies on the London Stock Exchange based on their market capitalisation.

Underlying

This refers to the asset, security or index on which a derivative contract is based.

Up/Down - Higher/Lower

An option trade type that allows you to predict whether the exit spot will be higher or lower than your target price.

Up/Down options

An option trade type that allows you to predict whether the market price will rise or fall at the end of the contract period.

Up/Down - Rise/Fall

An option trade type that allows you to predict whether the exit spot will be higher or lower than the entry spot.

Uptrend

A market condition where an asset's price is consistently increasing over a period of time.

US 500 (SPX)

The S&P 500 Index (SPX). It tracks the stock performance of the 500 largest publicly traded companies on the New York Stock Exchange (NYSE) and NASDAQ.

US Tech 100 (NDX)

Also known as the NASDAQ 100. It tracks the performance of the 100 largest non-financial companies on the NASDAQ stock exchange in the United States.

Value at risk (VaR)

Value at risk is the statistical measure used to estimate the maximum potential loss on a trading portfolio of financial instruments over a specific time period, at a particular level of confidence.

Vanilla Options

A trading product that offers a variable payout. Your payout will grow according to the distance between the final and strikes of the underlying asset.

Vanillas - Call/Put

An option trade type that allows you to predict if the market price will be higher or lower than your strike.

Vanillas - Payout Per Point

A feature with our vanillas trade type. It refers to your profit/loss for each point in the price movement of the underlying asset. You’ll start making profit when the payout is higher than your stake.

Volatility

Also referred to as market volatility, it is the degree to which the asset's price fluctuates over time.

High volatility means that the price of an asset is fluctuating rapidly, while low volatility means that the price is relatively stable.

Volatility Index (VIX)

A real-time index that measures market expectations for volatility in the US stock market over the next 30 days, derived from S&P 500 options prices. Known as the “fear gauge”, it reflects investor sentiment and tends to rise during periods of uncertainty or market stress. You can trade it on the Deriv MT5 Financial account as VIXUSD.

Volatility Indices (Synthetic Indices)

Volatility indices represent simulated markets that exhibit consistent levels of volatility, ranging from 10% to 300%. For indices marked with "(1s)", a single tick is generated every second.

Volatility Switch Indices

Synthetic indices that shift between low, medium, and high volatility regimes for random durations. They simulate realistic market cycles by providing clear volatility phases and dynamic spreads that adjust to changing conditions.

Volume

The volume of trade refers to the number of units of a particular trading instrument that you wish to buy or sell in a trade.

Volume limit

The maximum amount of a particular trade instrument that you're allowed to trade across all your open and pending orders.

Wall street 30 (DJI)

Also known as the Dow Jones Industrial Average. It tracks the stock performance of the 30 largest publicly traded companies on the New York Stock Exchange (NYSE) and NASDAQ.

Win condition

A situation where a trader makes a profit on a trade. This can occur when the asset's price moves in the direction of the trader's position, resulting in a higher value of trade than when it was opened.

Withdrawal

The action of transferring money from the main trading account to your preferred payment account.

You can make a withdrawal through your cashier here.

Yield

The return on investment generated by a trading strategy or portfolio of financial instruments. It is usually expressed as a percentage of the amount invested or the current market value of the investment.

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