Education & Links

Market Terminology

Margin Requirement

Unlike physical purchasing of stocks, clients only have to deposit 20% on Shares and 2% on Stock Indices. So if you want to buy $ 1,000 of Shares you deposit $ 200 if the stock has a 20% margin.

Market Capitalisation / Mkt. Cap

Market capitalisation is the number of shares in issue multiplied by the share price at the time the market capitalisation was calculated.

Mid Price

The mid point of the bid / offer spread quoted by the market makers. The price shown in the share price pages and market reports within the financial media, but not the price at which you could necessarily expect to conclude a deal to buy or sell. The price at which you buy will be higher and the price at which you sell will be lower than the mid price in almost all circumstances.