Financial markets are awash with jargon that can confuse investors. Jargon buster attempts to illuminate potential investors to what financial jargon means. If there is a term you wish to know more about ask through Contact tab and it will be added to the list if relevant.
Buying shares - Spending money to place shares into your portfolio.
Selling shares - Disposing of shares from a personal holding. These shares no longer have an effect on your portfolio once sold.
Going Long - Buying shares to hold for an upward move or using a financial instrument such as Contract for Difference (CFD) to get exposure to an upward move.
Going Short - Using a financial instrument such as Contract for Difference (CFD) to get exposure to a downward move. This is not the same as selling shares. Price moves will continue to have an effect on your portfolio!
Active Trader - Someone that is always buying and selling shares or CFD's to get lots of smaller gains (or losses). A trader may hold for minutes, hours or days only before moving on.
Investor - Someone with a longer term horizon. Will generally look for returns within a few months to many years and will not actively buy and sell continually.
Contract for Difference - Leveraged financial instrument that allows part payment of an underlying stock holding in either Long or Short aspects. Gains or losses are magnified and can exceed original stake. NOT FOR BEGINNERS!
Leverage - Placing part payment for shares with a short term financial loan covering the rest. Gains or losses are magnified and can exceed original stake. NOT FOR BEGINNERS!