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Financial Glossary:

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Daily bets

see intraday bets, daily bets are spread bets that expire at the end of the trading day.
 
Daily settlement

the official closing price for a particular market on a certain day. Also called daily close
 
DAX 30

The index of 30 of the largest companies on the official list of the German Stock Exchange.
 
Day order

an order that will be filled during the day's trading session or cancelled.
 
Day trader

a trader who establishes and liquidates positions within one day's trading, ending the day with no established position on the market.
 
Day trading

An approach to trading where positions are short-term, typically opened and closed in the same day. Refers to establishing and liquidating the same position or positions within one day's trading, thus ending the day with no established position in the market. Day trading can also be defined as the placing of up and down spreadbets over a very short time span with a view to making some quick profits.
 
DAX

the index for the thirty largest stocks on the German Stock Exchange. The DAX (Deutscher Aktien IndeX) is a German stock index representing the 30 largest companies trading on the Frankfurt Stock Exchange.
 
Dawn raid

The purchase of a large number of shares early in the morning at the opening of the market. Often the first step in a takeover bid
 
Day trader

A day trader refers to a speculator who trades on a very short time frame, opening and closing positions within the day, closing out most positions before the end of the day. Day traders will play the volatility in the markets and react to the days events accordingly.
 
Dead Cat Bounce

Rise in a security or broader market following a sustained drop, followed by another precipitous drop due to a lack of change in the fundamentals of said financial instrument or market.
 
Dealing

Buying and selling shares. A dealer is person, or institution, through which shares or securities can be bought or sold.
 
Debenture

Stock issued by a company and backed by its assets. It carries a fixed interest rate and is quoted like Government stock in terms of £100 nominal units. Its market value will move in sympathy with interest rates.
 
Debtor

People who owe cash to a company.
 
Debt

Money a company owes to banks, financial institutions, other companies or individuals.
 
Debt to equity ratio

Compares the amount of a company's debt funding to its equity funding. Companies with a high ratio of debt compared to equity are considered a higher risk. The greater level of debt may contribute to the company defaulting on its loans. Another negative is that debt is usually a large expense for the business.
 
Deep in the money

an option which is so far in the money that it is unlikely to go out of the money prior to expiration.
 
Delta

the measure of the price-change relationship between an option and the underlying futures price. Equal to the change in premium divided by the change in futures price.
 
Deposit

the funds required as initial outlay for a bet. It is not the total amount that can be lost on a bet. Also called margin.
 
Deposit account

aka Debit Account. an account that should have enough funds to allow a client to place a bet. The opposite of a credit account.
 
Deep out of the money

an option which is so far out of the money that it is unlikely to go in the money prior to expiration.
 
Deposit (NTR)

the funds required as an initial outlay for a spread bet. With a credit account, the deposit requirement is waived up to your credit limit.
 
Depreciation

The reduction in the value of an asset (e.g. Vehicles, machinery, computers) over time. Money set aside to pay for the replacement of assets.
 
Derivative

Futures and options. A financial instrument that derives or takes it price from that of an underlying security such as an equity or commodity - be it the price of BP or the price of Silver. The security themselves may not be needed for the trade to take place. Examples of derivatives are options, futures, Contracts for difference (CFDs) and spread bets. Investors often trade derivatives to offset short-term falls in the value of the underlying security.
 
Discount

The amount by which a price of one instrument is lower than that of a similar instrument. A derivative that is trading below the current market price it is said to be trading at a discount. As opposed to a premium. 2. the difference between the futures price and the spot price when the future is trading below the spot.
 
Dividend

The proportion of a company's earnings distributed back to its shareholders in cash on an annual basis. A dividend is a regular cash payout to investors made on a per share basis. The part of a company's profits distributed to shareholders, usually on a regular basis. An interim dividend is paid at the half-year stage and a final dividend at the end of the full year. Dividends are not paid on spread bets but are taken into account through the pricing of the bid-offer spread.
 
Dividend cover

An indication of a company's ability to pay a dividend. The number of times the gross dividend could have been paid from the company's profits (after tax and payment of interest and preference share dividends).
 
Dividend payout ratio

A ratio indicating what percentage of earnings is paid out in dividends.
 
Dividend Return

The dividend return is calculated as the dividend paid out by a company as a percentage of the current share price.
 
Dividend yield

A common valuation measure calculated by dividing dividends per share by the share price. It is useful for making comparisons against money market interests rates. Dividends can add a few percent to your overall stock market returns. To calculate the yield, divide the dividend paid by a company, assuming there is one, into the share price. Any yield above the rates of interest available from the High Street banks tends to attract strong support for the shares.
 
Double Bottom

A technical analysis term where a share's price has made two almost equal bottoms (price lows) over a relatively short period of time. Traders often try to buy the 2nd bottom with the view that the share’s price will rise forming a 'W' shape on the share's chart. The opposite of a double bottom is a double top.
 
Double Dip

A second drop in a market or economy after significantly dropping for first time.
 
Double numbers

Used in sports spread betting. Double the racecard numbers of all the winners at a particular horseracing meeting. So if horse number 12 wins a race, counts as 24 for the market.

Double top, bottom

A chart formation that signals a possible trend reversal. A double top is technical analysis term where a share's price has made two almost equal tops (price highs) over a relatively short period of time. Traders ofter try to short the share at the 2nd top with the view that the share's price willf all forming a 'M' shape on the share’s chart. The opposite of a double top is a double bottom. A double bottom would look similar to a W on a chart and a double top would look similar to an M.
 
Dow Jones Industrial Average index (DJIA)

American Share Index. US equivalent of the Footsie. A price-weighted average of thirty actively traded blue chip stocks on the US stock exchange, primarily industrials. The thirty stocks are chosen by the editors of the Wall Street Journal (which is published by Dow Jones and Company). This index is the most widely used indicator of the overall condition of the stock market. More information on the Dow Jones available here.
 
Down bet

a bet that the price of a particular financial instrument will fall. Also referred to as a sell or going short.
 
Downtrend

A series of lower lows and lower highs. A price trend characterized by a series of lower highs and lower lows.

 
Drawdown

the equity reduction in a trading account. The maximum drawdown is the largest difference between a relative equity peak and any subsequent equity low. Low drawdowns are a desirable performance feature for a trader, hedge fund or a trading system.

Dutch Auction

An auction in which the price is gradually lowered until a bid is secured. That bid then becomes the price at which the offering - such as US Treasury Bills - is then sold. The term is often synonymous with tenders.