D

Day order (DO)

An order that is valid until the end of the day. If it has not been filled before this, it is cancelled.

For Forex, the end of the day is 22:00 GMT on the day that you place the order.

For CFDs and Stocks, the end of the day is when the exchange on which the stock is traded closes.

Decline

A decrease in the value of an instrument.

Delivery date

The date on which delivery of the underlying goods of a Futures contract will take place. For speculative investing in Futures, the contract future position must be closed on or before this date.

Delta

In Forex Options, a Delta of, for example, 25 implies a 25% exposure to the underlying spot. In other words, a spot position that equates to 25 % of the notional amount of the Option. An Option with a Delta of 25 at inception indicates a 25% likelihood that the Option will be exercised in the money. Technically, Delta can be described as a ratio that compares the change in the price of the underlying asset to the corresponding change in the price of a derivative.

Depreciation

A decrease in the value of an instrument.

Derivative

Instruments that are constructed (derived) from another security. For example, CFDs are derivatives of physical Stocks.

Direct Market Access (DMA)

Direct participation in the order book maintained by an exchange. The order book contains orders to buy and sell a security, and is used to establish the current market Bid/Ask price.

Dividend

The percentage of a company's stock value paid to shareholders. A stock selling for USD 100 a share with an annual dividend of USD 1 a share yields the investor 1%.

Double leverage

‘Double Leverage’ lowers the margin requirement needed for trading an instrument by half. If 20:1 leverage is offered on Index-tracking CFDs, this means that if an investor buys, for instance, 50 DAX® Index-tracking CFDs at 6300, then their collateral requirement will be approximately EUR 15,750 or 5%. With Double Leverage, an investor can buy 50 DAX® Index-tracking CFDs at 6300, then their collateral requirement would be approximately EUR 7,875 or 2.5%.

Downtick

A downward movement of one tick or more in the price quote. Many stock exchanges have an uptick rule that states that a stock can only be sold if the stock price has ticked higher than the last price at which a transaction has taken place. This is aimed at traders who want to sell short, and is designed to prevent snowballing declines in the market. Other exchanges have tick test rules that are essentially the same as the uptick rule: Stocks may only be shorted on so-called zero-upticks, which means that the transaction price is either higher than the last transaction price, or that the transaction price is unchanged but higher than the transaction price that preceded it. This is known as a zero uptick or zero plus tick. CFDs are advantageous for traders that are bearish on a stock, because there are no uptick or tick test rules associated with CFDs.