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

Xetra

A trading venue operated by the Frankfurt Stock Exchange.

Wall Street

A street in New York that became a figure of speech for the financial markets of the US.

Arithmetic Mean

The sum of a set of numbers added together and then divided by the total amount of numbers in that set.

Limit order

Learn what a limit order is and how to use it to make the most of your portfolio.

OEIC

Unique to the UK, these funds pool together money to invest from multiple investors.

Packaged Retail and Insurance-based Investment Product (PRIIP)

An investment where, regardless of its legal form, the amount repayable to the retail investor is subject to fluctuations.

Dirty price

The total price payable on the purchase of a gilt. It’s calculated as the clean price plus accrued interest.

Investment Trust

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

Venture Capital

A type of financing that investors provide to startups, who sometimes announce getting said financing in TechCrunch, to big fanfare.

Freetrade does not provide investment advice and individual investors should make their own decisions or seek professional advice. The value of investments can go down as well as up and you may receive back less than your original investment. Freetrade is a trading name of Freetrade Limited, which is a member firm of the London Stock Exchange and is authorised and regulated by the Financial Conduct Authority (FCA reg. no. 783189). Registered in England and Wales (no. 09797821).

Free Trade