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You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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Deflation
Deflation is a continual, widespread decrease in the overall level of prices in an economy. This is distinct from inflation, and while it might appear to be a good deal, deflation is typically more dangerous. With falling prices, both consumers and businesses have an incentive to plan not to spend, at least in the short term; why buy today what will cost less tomorrow?
This creates a downward spiral of decreasing demand, falling prices, further delay, and more people delaying the purchase. This vicious cycle is known as a deflationary spiral, and is very difficult to break once it has taken hold.
The anxiety over monetary policy has been so strong because of the apparent lack of efficacy of traditional policy tools, such as cutting interest rates, when rates are already near zero.
The 1990s and 2000s were a period of being trapped in a deflationary environment, and thus, the way central banks around the world approached price stability was shaped by that experience.
Example: Prices in the U.S. fell dramatically and continued to decline during the Great Depression years of the 1930s. Businesses cut back on pay, investment, and banks cut back on lending.
All those reactions were reasonable at an individual level. Still, as a whole, they made the situation worse; a typical deflationary trap which only took years and the intervention of the government in general to overcome.
Delisting
Delisting is the removal of a company’s shares from a stock exchange, making the shares no longer capable of being actively traded on that venue. It may occur either voluntarily or involuntarily, and the situations are very crucial.
A voluntary delisting is typically something structural: a takeover, a buyout, a move to go private or a consolidation to a single exchange.
This is not the case with involuntary delisting. The exchanges have ongoing responsibility in the financial reporting and minimum share prices, market capitalization, and the standards of governance. Those companies that constantly violate those requirements receive a warning, then suspension, then removal.
Such delisting is practically always an indication of great distress. Delisting a stock does not necessarily mean shareholders lose the money they invested in the underlying company, but liquidity is lost, and with it, easy price discovery. It becomes challenging to sell, valuation is obscured, and recovery is unpredictable.
Example: A small-cap mining firm on the AIM in London is repeatedly late in submitting its accounts and sees its share price plummet to a level below the lowest conceivable. The stock is finally suspended, and later delisted. The shareholders are left with equity in a company having no public market, no visible price, and no obvious way out.
Delta
An indicator of how sensitive an option’s price reacts to changes in an underlying asset’s price.
Demarker Indicator
Tom DeMark created the Demarker Indicator. It’s a technical analysis indicator that assesses how many assets are being bought versus the previous time frame. It is used to spot price exhaustion levels; times when a trend could be losing steam and a potential reversal could be close.
The indicator ranges from 0 to 1. Levels above 0.7 are normally considered overbought, and the asset might be due for a pullback. Readings under 0.3 indicate oversold conditions, indicating a possible bounce.
The Demarker, unlike some other momentum indicators, is based on intraperiod highs and lows rather than closing prices, which its supporters believe provides a better indication of the area where buying and selling pressures are truly occurring. It is best used in conjunction with other tools, rather than in isolation.
Example: A forex trader is observing a currency pair that has been consolidating in a strong upward trend over the past few days. The Demarker Indicator starts to rise above 0.7 and then levels off.
The move higher is not the target for this trader; rather, he waits for price action confirmation to determine whether the trend has further to run or if a reversal is setting up.
Denmark Krone (DKK)
The official currency of Denmark, Greenland and Faroe Islands is the Danish Krone. Krone is a Danish word for crown and the currency has been in use since the late 19th century. One interesting thing about the Danish currency market is that the country has been pegging its currency to the euro for quite a long now.
Denmark is not part of the euro zone but has a fixed exchange rate of the Danish currency against the euro which fluctuates by no more than a few basis points. Denmark’s central bank, Danmarks Nationalbank, closely tracks this peg and intervenes in currency markets and adjusts interest rates as needed to keep the exchange rate constant. That peg has been around for decades and is one of the world’s most respected fixed exchange rate regimes.
Example: The Swiss National Bank ditched its franc peg in 2015 with European currencies soaring up and down, and the Danish Krone staying relatively stable. The Nationalbank took the bull by the horns, cutting interest rates to unprecedented lows in an attempt to help the peg to the euro. This illustrated both the reason and the cost of backing the peg in an era of increased external pressures.
Department of Communities and Local Government (DCLG) UK House Prices
DCLG is the house price index of the UK government, which no longer exists in its original form. But it shaped housing policy debates for years. It was published by the Department of Communities and Local Government.
It drew on mortgage completion data provided by the lenders to track the average residential property prices across England, divided by region, type of property, and type of buyer; first-time buyer versus someone who had previously owned a property.
This was hardwired into its approach: since it only recorded mortgage deals, it was always telling a partial story. Since then, it has been absorbed into the UK House Price Index, a more general index jointly produced by HM Land Registry, Registers of Scotland, and Land and Property Services Northern Ireland. This covers all residential sales irrespective of how they were financed.
Example: A policy analyst of housing working in 2009 would have turned to data compiled by DCLG to demonstrate the disparity between regional markets; the average price of a first-time buyer in the North East, which is running at approximately half the prices of Greater London. That type of imbalance was the direct source of argument about where stamp duty thresholds should be and who should be eligible to receive early Help to Buy programs.
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