Glossary
Contract for Difference (CFD)
A contract in which the buyer does not actually own the underlying asset (stocks, commodities, gold, currencies, crypto assets, etc.) but agrees with the seller of the contract for difference to settle the difference in price between the present and a future point in time. When opening a "long position," the buyer expects the price to rise and if it does, they will make a profit at the seller’s expense. For a "short position," the logic is that the buyer expects the price to fall.
Corporate Risk
The risk associated with the possibility that a company may incur losses or face difficulties due to internal or external factors that can affect its operations, profits, value, or sustainability. It includes financial, operational, strategic, reputational, and legal and regulatory risks, encompassing all potential threats to the company’s stability and success, and requires active risk management for effective control.
Corporation Tax - glossary for children
A part of a business’s profit that is paid to the government.
Credit
A financial instrument in which a bank or another financial institution (the lender) provides monetary funds to an individual or legal entity (the borrower) under the obligation to repay them within an agreed period and under specific conditions. The compensation for the use of these funds is usually interest, and in many cases the credit is secured by assets or other guarantees. Credits may vary in terms of duration and purpose – for consumption, home purchase, investment, or financing of business activities.
Credit Card
A payment card that represents a type of revolving credit. Unlike a debit card, the amount used on a credit card is not withdrawn from the cardholder’s bank account but from the credit limit provided by the bank or credit company. If the amount is repaid within a grace period set by the bank (usually between 45 and 60 days), the cardholder does not owe interest. After this period, interest is charged on the used amount.
Credit Card - glossary for children
A card that can be used to pay or take out money provided as a loan by a bank or financial institution up to a certain limit. The money must be paid back on time, and if it is not, interest is usually added. There is also often a fee for getting the card, withdrawing cash, or paying in a different currency.
Credit History
Information about an individual’s past and current loans, including their amount and number, repayment behaviour, whether the individual has credit cards and how much they owe relative to their credit limits, as well as details about owned movable and immovable property. Timely repayment of obligations contributes to a good credit history.
Credit Intermediary
A natural or legal person who, in return for remuneration, provides intermediary services in the offering or conclusion of credit agreements with consumers, as well as advice and consultations related to such agreements.
Credit Limit - glossary for children
The highest amount of money that can be spent using a credit card.
Partners
