Glossary

Welcome to the Kudotrade Glossary, here you will find clear and concise definitions of key terms and concepts, which are essential for navigating the world of financial markets and trading.

Accrued interest

Interest collected on a bond or other fixed-income security since the last interest payment.

Acquisition

The process of acquiring an asset, which may affect employees, consumers, and shareholders.

After hours

Trading that happens after the normal market hours.

Annualised return

Annual return on investment, taking into account the investment’s duration and any changes in value over time.

Ask price

The lowest price for which a seller will accept a security. It is also referred to as the “offer price” and is always higher than the bid price.

Asset

An intangible, liquid economic resource that may be traded between individuals and institutions.

Asset class

A collection of assets that have a similar financial structure.

Automated trading systems (ATS)

A computer programme that executes transactions according to specified rules and algorithms.

Average holding time

The average time a trader holds a position open for.

Balance

total remaining funds in the account.

Bank Rate

The interest rate at which a central bank lends money to commercial banks and financial institutions within its jurisdiction. It is a key tool used by central banks to control monetary policy, influence economic activity, and manage inflation.

Bear market

A prolonged period of dropping prices is also known as “bearish”.

Bid price

The highest price at which a buyer is willing to purchase a security, such as a currency pair or a stock. It represents the price level at which traders or investors can sell an asset if they are initiating a sell (short) trade or closing a long trade.

Bonds

Bonds are investment instruments issued by businesses or governments to finance projects or operations.

Bull market

An extended upward trend in the market, starting from the previous lows.

Buy limit order

An order which will be entered at a specific price or lower.

Buy stop order

An order to enter a security at a specific price or higher.

Candlestick chart

A chart that displays the historical and real-time prices of a product or market, allowing you to discover patterns and trends.

Capital

Funds in the account which can be used to trade.

Capital return

The potential return in investment from the original price.

Central bank

A financial entity responsible for managing a country’s monetary policy and regulating its financial system.

Closed position

An order that has been sold or closed.

Copy trading

Mirroring someone else’s real time trades.

Current assets

Assets that a company expects to convert into cash, sell, or consume within one year or within its operating cycle, whichever is longer. They are essential for a company’s short-term liquidity and are used to fund day-to-day operations.

Current liabilities

The obligations or debts that a company is expected to settle within a short period, typically within one year or the normal operating cycle of the business, whichever is longer. These liabilities represent financial obligations that require the use of current assets or the creation of new liabilities to meet them.

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Risk Warning: Trading Contracts for Difference (CFDs) involves significant risk and may not be suitable for all investors. The high degree of leverage offered in CFD trading can work against you as well as for you. Before deciding to trade CFDs, you should carefully consider your investment objectives, level of experience, and risk appetite. You should not invest money that you cannot afford to lose. Ensure that you fully understand the risks involved and seek independent financial advice if necessary.

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Company Information: Kudotrade is a brand name with multiple entities that are authorised and registered in various jurisdictions:

  • Kudo Trade (Mauritius) Ltd is authorised and regulated by the Financial Services Commission of Mauritius under license number GB24203599.
  • Kudo Trade Ltd is registered under the Saint Lucia Register of International business companies with registration number 2024-00239. 
  • Kudo Systems Ltd, registered in Cyprus is an appointed representative of Kudo Trade (Mauritius) Ltd with rights of distribution.

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