What is 'Interest Rate'? | Freetrade Dictionary

The amount a lender charges for lending your money, or a borrower pays you for borrowing your money.

More terms

Internal Rate of Return (IRR)

A means of calculating the potential future return on an investment.

Stock Exchange

A physical/digital place where stockbrokers and traders can buy and sell securities.

Bond

Learn what a bond is

Limit order

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

LSE

London Stock Exchange, which was founded in 1571 and now has a market cap of almost $5 trillion.

Leverage

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

Nominal amount

The face value of a gilt. It represents the amount that will be repaid to the holder at maturity and is also used to calculate the dividend or coupon payment.

Spot Rate

The currency exchange rate a bank quotes, valid with immediate effect.

Maturity date

The date on which a gilt is redeemed and the gilt holder receives the repayment of the nominal amount and final dividend or coupon payment.

Interest Rate