Dictionary
/
Volatility

Volatility

A measure of how much the prices of an asset or index vary over time.

A measure of how much the prices of an asset or index vary over time.

More terms

Year to Date (YTD)

A period of time that starts with the first day of the current calendar year and ends with today.
Read more

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.
Read more

Investment Trust

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

Beta

Learn what Beta stands for in finance.
Read more

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.
Read more

Conventional gilts

Gilts where the dividends and principal repayments are fixed in nominal terms. This is as opposed to an index-linked gilt where the dividends and principal repayments are related to movements in the Retail Prices Index (RPI).
Read more

Time Value of Money

The concept that money you have now is more valuable than the same sum in the future.
Read more

Account balance

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

Equity

The amount of money a company would be left with by subtracting its liabilities from the value of its assets.
Read more

You’re just minutes away from commission-free investing

open an isa
When you invest, your capital is at risk

Freetrade is your gateway to commission-free investing. Join over 1.6 million users using the Best online trading platform, as voted at the British Bank Awards for six years running.

Accounts
Customer Support
Resources
Company
Important information

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.

Follow us on