What is 'free trade'? Definition & meaning

The other free trade. International trade in which countries allow goods to flow across their borders without imposing import or export taxes.

More terms

index-linked gilts

Gilts where the dividends and principal repayments are related to movements in the Retail Prices Index (RPI). This is as opposed to a conventional gilt, where the dividends and principal repayments are fixed in nominal terms.

Oligopoly

A situation in which a market or industry is controlled by a small group of companies.

Xetra

A trading venue operated by the Frankfurt Stock Exchange.

Gross Margin

The difference between a company's revenue and the cost to produce its goods/services, divided by revenue.

Account balance

The amount of money a user has stored in a financial repository.

Leverage

A method of trading using borrowed money that usually involves a very high level of risk.

Investment Trust

A company that pools money together from multiple investors and then invests it.

Unit Trusts

A collective investment scheme the investors pay money into in exchange for units. The money is invested in a diversified portfolio of assets.

Zero coupon bonds

What is a zero coupon bond?

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Free Trade