Bid, ask and spread
The bid is a quoted buying price and the ask is a quoted selling price from a market maker or venue. The difference is the spread. Quotes can change rapidly and do not always guarantee execution.
Volatility
Volatility describes the extent of price variation. Higher volatility can mean larger price changes over a period. It does not establish a direction or predict future performance.
Liquidity
Liquidity refers to how readily an asset can be bought or sold. Thin liquidity may result in a larger difference between expected and executed prices.
Margin and leverage
Margin is the amount required to support a position. Leverage describes exposure relative to the capital committed. Both require careful attention to the provider’s rules and the potential for losses.
Diversification
Diversification spreads exposure across assets or risk factors. It can reduce concentration but does not eliminate risk or guarantee protection during market declines.