Contracts for difference (CFDs) are a type of financial derivative used in CFD trading, which works as an agreement to exchange the difference in the price of an asset from when the position is opened to when it is closed. CFDs can be used to speculate on the future price of a variety of markets, including shares, forex, commodities, indices, bonds, and others.

An industry’s concentration ratio is the size of a certain number of firms in an industry compared to its total size. It is used to calculate one or more firms’ dominance of their sector.

A commodity is a basic physical asset, often used as a raw material in the production of goods or services.

The commission is the charge levied by an investment broker for making trades on a trader’s behalf.

An asset’s closing price is the last level at which it was traded on any given day. This price is often determined by an auction.

A chartist is a trader who relies predominantly on charts to help them understand a financial instrument’s historical price movements, in order to better predict and to speculate on its future performance. They are also commonly known as technical analysts or technical traders.

Cash flow is the amount of money coming into and going out of a company’s accounts, as reported in earnings announcements. It can refer to a single project or the entire business.

When a trader sells an asset at a lower price than they initially paid for it, they have incurred a capital loss. As such, the capital loss is the opposite of capital gain: the profit made when an asset is sold for more than originally paid.

Capital gains tax (or CGT), is the tax levied by the government on the profits made from financial asset sales. CGT regulations and levels vary from country to country.

Capital expenditure, or CAPEX, is the term used for the money spent by businesses on physical assets. It’s an important part of understanding a company’s accounts.