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I am not a professional grader of coins, I will do my best to give accurate descriptions of the coins I am selling and I use the following definitions for my grading. I have attached some pictures as a guide to my interpretation of these grading's.
Grading of coins
In addition to the above the following also apply:

FDC: (Fleur de Coin): Perfect mint state, with no abrasions or marks, and full lustre. Usually applied to proof coins only.

‘A’: Coins that fall in between grades may be graded with an ‘A’ in front of the grading initials. This ‘A’ means “about” and designates a coin that is close to but not quite at the higher grade, e.g.  AVF means about VF, and these coins will be better than F but don't quite make the VF grade.

‘+’: Again this represents a slight improvement over the grade given, i.e. VF+ means slightly better than VF but not quite AEF
Very Good (VG)
Considerable wear over the whole coin but free from major gouges, coins are not altogether unattractive.
Poor
A coin in Poor condition is generally not collectable, it may be bent, the inscription worn off and the date illegible.
Good (G)
A heavily worn coin. Inscriptions and date considerably worn but legible.
Fine (F)
A moderate to considerably worn coin. The basic outline is very clear, all lettering visible with some weaknesses.
Very Fine (VF)
Detail clear, but obvious evidence of circulation. Moderate wear on all high points.
Extremely Fine (EF)
The design is lightly and evenly worn overall, but all features are quite sharp and well defined. Small traces of lustre may show.
Brilliant Uncirculated (BU)
Full mint lustre,  no toning or tarnish.
Uncirculated (UNC)
No trace of any wear, although some bag marks possible. These coins have not been in circulation. Older coins may be tarnished or toned.
Proof
This describes the process of striking coins using specially prepared dies and polished blanks. The minting process is usually carried out  twice with extra pressure to ensure maximum detail.