A pending order is an instruction to buy or sell an asset at a specific price that differs from the current market price. It has not yet been executed, so it is not considered an actual trade. The purpose of a pending order is for it to be executed automatically once the market price reaches the level you have set, allowing you to enter the market under predefined conditions without needing to monitor the price constantly.

A stop-loss order and a take-profit order are both tools for risk management you can use when it comes to trading. They are instructions that you can attach to an open position to automatically close it at a specific price.
Stop-loss order: Closes your position at a predetermined price if the market moves against you, helping to minimise potential losses.
Take-profit order: Closes your position at a set price to secure profits before the market reverses.

When you trade with leverage, only a percentage of the total trade value is required by the broker. The rest of the trade is financed by the broker or financial institution. The leverage ratio indicates how much larger your position is compared to your margin.

This allows traders to potentially gain higher returns with a smaller initial investment. However, losses are also magnified. If the trade moves against you, your losses could exceed your initial margin, potentially leading to a margin call.

For example, if you have a leverage of 10:1, this means you can obtain a position worth 10 times your actual investment. With a margin of £1,000, you could trade a position worth £10,000.

For retail accounts, maximum leverage is up to 30:1 when trading on a CFD or spreadbet with us. You should therefore manage your risk accordingly and only ever trade using risk capital.

A swap in trading CFD’s or Spreadbets is the overnight fee you pay to keep a leveraged trade open.

Spread is the difference between the buy (ask) and sell (bid) price.

Pending orders can sometimes be executed at a different price if there is a sudden, large price movement (a price gap) due to market volatility. The order is filled at the next available price rather than the exact price you set. This difference is known as slippage.

In leveraged trading, you do not receive a traditional dividend because you do not own the underlying asset. Instead, you receive a dividend adjustment into your trading account depending on whether your position is long or short. To be eligible, you must hold an open position on the ex-dividend date.

The dividend will be applied to your account on the ex-dividend date.

A pip is the standard unit of measurement for price movements in trading. The value of a pip depends on your position size. For example, one standard lot of GBP/USD has a pip value of $10. If the market moves 5 pips, this results in a profit or loss of $50.