Market Terminology

CAC 40

An index of the largest 40 companies listed on the French CAC market. The CAC index is published by the Societe des Bourse Francaises.

Closed Position

An equal and opposite transaction, i.e. buying 1000 BT shares then selling 1000 BT shares, the position will be automatically closed.

Closing Price

The closing price is the last price for a tradable instrument at the time the market closes.

SETS, the closing trade price is the uncrossing trade price at which orders execute during an auction, or a Volume Weighted Average Price (VWAP), or the last automatic trade price.

For SEAQ, SEATS and AIM securities the closing price is the best bid, offer and mid price calculated from market maker quotes at the end of the mandatory quote period.


A fee paid to a stockbroker for obtaining a security, generally as a percentage of the value of the trade or as a flat rate.

Contract Note

The record the investor receives from his stockbroker confirming the terms of the deal that the stockbroker has undertaken on their behalf.

Contracts for Difference (CFDs)

CFD means Contract for Difference. They were developed to allow clients to receive all the benefits of owning a stock without having to physically own the stock. In other words you cannot take delivery of a CFD so you have to settle the difference between where you bought the contract and where you sold it. The difference is either profit or loss.