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Glossary

We have compiled a comprehensive A-Z glossary of share dealing and investment terms.

M

Margin
To trade on margin you only deposit a fraction of the overall value of the trade.

For example in CFD trading the initial margin is typically as little as ten per cent, eg. £1,000 for a CFD in £10,000 worth of shares, thus allowing you to make a much larger potential investment than if you were to buy the shares outright. This translates into much higher profits if you invest the right way, but also much larger losses (which can be protected by stop losses or guaranteed stop losses) if you invest the wrong way.

Market Capitalisation
This is a measurement of a company's size - the share price multiplied by the number of shares in issue.

Mergers
In a merger, two companies come together to become one. The shareholders of the merging companies often become joint owners of the combined entity.

Mid Price
The mid point between the buying (offer) price and the selling (bid) price.

MiFID
Markets in Financial Instruments Directive. This directive governs much of the way we deal with investments for our clients.

Multilateral Trading Facility
A regulated market operating in accordance with the provisions of the regulations as defined under MiFID.

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