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HPE stock jumps 28% on Q2 beat, boom in AI business

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Oil spikes over 1% as Israel intensifies attacks

Trends & Analysis
News

Oil surges over 3% on elevated Middle East tensions

News

Broadcom stock tanks 13% despite record Q2

News

Gold prices rise on easing Middle East tensions

News

Japan’s Nikkei 225 hits record high

News

HPE stock jumps 28% on Q2 beat, boom in AI business

News

Oil spikes over 1% as Israel intensifies attacks

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Deficit definition

In trading and investment, deficit refers to the negative balance in an account or portfolio. Deficit occurs when the outgoing sum of money is greater than the incoming sum. For example, an investor opens a trading account and deposits $10,000. They experience a loss of $4,000 after executing a few trades and gains $2,500. This results in a deficit of $1,500.

 

Fiscal deficit in governments

Governments can also run a fiscal deficit. That is when the difference between a government’s total spending exceeds its total revenue, causing a budget shortfall or a budget deficit. When governments have a large fiscal deficit, there can be negative implications for the country’s economy, potentially causing a decrease in the value of its currency in the forex market.

Conversely, if a government runs a small or no fiscal deficit, it may be interpreted as a sign of economic stability, which can lead to an increase in the value of its issuing currency.

 

Start trading with ADSS

ADSS offers a range of global markets for traders, with opportunities in indices, commodities, forex, equities and more. We also feature tutorials, how-to guides, and weekly webinars to help you navigate the financial markets and find better trading opportunities. You can start trading and investing online by opening a live trading or demo trading account.

 

See all glossary trading terms

 


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Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.

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