/

Nominal amount

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.

More terms

Net Income (NI)

The money a firm is left with from sales after subtracting taxes and different business costs.

Running yield

The annual interest payment (dividend) divided by the current market price of a bond.

Total Return

This is the measurement of a fund’s performance in a specific period.

Synthetic ETFs

An ETF that that reproduces the return of an index through the use of swaps.

Balance sheet

A summary of a company's finances, including its assets, liabilities and shareholder equity.

Technical Analysis

Examining price movements of shares and other assets, and trying to predict how they will move in the future.

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.

Spot Rate

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

Exchange-Traded Fund (ETF)

A collection of investments, pooled into a single fund that can be bought and sold on a stock exchange.

You’re just minutes away from commission-free investing

When you invest, your capital is at risk

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. Registered in England and Wales (no. 09797821).

© 2025 Freetrade, All rights reserved. The Apple logo is a trademark of Apple Inc. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.