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Interest Rate

Interest Rate

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

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

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Leverage

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

The average annual return an investor sees over a set period of time.
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Retail Prices Index (RPI)

An index published each month by the Office for National Statistics, which measures the level of retail prices in the UK. Cash flows on all index-linked gilts are linked to the RPI.
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Beta

Learn what Beta stands for in finance.
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UK Treasury bill

A debt instrument issued by the UK government with a maturity of less than one year.
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Forward pricing

Mutual funds are traded on a forward pricing basis, meaning the price you see will be different to the price you may trade at.
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Investment Trust

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

A startup valued at over £1 billion. They are rare, hence the name.
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W-8BEN Form

Non-US individuals and businesses may have to file this form for the Internal Revenue Service (IRS), the US tax authority.
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