Trading Basics
Deep Out of the Money
In options trading, this means when the strike price is the wrong side of the current price and a long way from it. The option is out the money and there is little chance of it being in the money.
Other Trading Basics
Bear Market
A Bear Market occurs when the price of a security is falling, and the negative outlook of the security causes the security’s price to continue to fall, causing a self-sustaining problem.
For a downturn like this to be officially considered a bear market, it must be on-going for longer than two months, otherwise it is known as a correction.
Bears are generally traders with a pessimistic view on markets that look to profit from a decline in prices.
Available Margin
The amount of margin a trader has available to trade with.
This is account balance minus margin used on open positions.
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Learn the skills needed to trade the markets on our Trading for Beginners course.
