Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
The term parity can be used in a few ways when trading, but always as an expression of equality.
The most common use of parity is in the forex market, where it signifies the point where two currencies have an equal value. That would mean that the exchange rate between the two currencies is exactly 1/1.
Parity can also be used in options, when an option’s value is equal to its intrinsic value, or on exchanges when multiple bids are identical and as such equal.
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