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Glossary Finance & Markets

Margin call

A demand to add funds when a leveraged position moves against you. Fail to meet it and the position is closed for you, at whatever the price happens to be.

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Circuit breaker

An automatic pause in trading triggered by a sharp move. The aim is to let information…

Deflation

A sustained fall in the general price level. It sounds welcome but tends to delay spending…

Leverage

Using borrowed money to increase exposure. It multiplies gains and losses equally, and forced selling by…

Conflict of interest

A personal or financial stake that could reasonably be seen to compromise coverage. The usual remedies…

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