Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% 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. 76% 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.

Passive investment definition

Passive investment is an investment strategy which seeks to track a benchmark or an index, rather than outperform it (the aim of active investment).

The majority of exchange traded funds (ETFs) are categorised as passive investments, as they aim to track the performance of an index instead of attempting to outperform it.

Visit our ETF section

Learn more about the terms associated with ETF trading with our ETF glossary.

A - B - C - D - E - F - G - H - I - J - K - L - M - N - O - P - Q - R - S - T - U - V - W - Y

See all glossary trading terms

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