Spread Betting Glossary: V
1. Variation margin: The application of current trading profits in respect of total margin; applying trading profits and losses to account deposits to calculate the total ability of a trading account to pay off its debts, variable depending on the strength or weakness of current open positions.
2. Virtual trading: A means of practice trading using a demo account that requires no trader deposits and provides only virtual returns and losses, enabling beginners to develop trading strategy on live markets without exposure to risk.
3. Volatility: The degree to which a market is likely to move sharply up or down. More volatile markets enable greater returns to be made in a shorter period of time.