Head and Shoulders

Trading Basics

Head and Shoulders

A complex price pattern that forms in an uptrend and suggests a reversal.

Head and Shoulders pattern in the AUD/NZD pair
Head and Shoulders pattern in the AUD/NZD pair

Other Trading Basics

Cash or Spot Market

Also known as a spot market, cash markets are different to futures contracts, as commodities are traded immediately for cash at the current market price.

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AIM

Alternative Investment Market. A small cap stock market in the UK.

Lighter listing rules reduce the costs for the companies listing and seeking external equity finance.

A good starting point for growth companies not quite ready for the main LSE.

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Collateral

The resources put up by the trader to enter a trade.

Requested by the counterparty and normally in the form of cash but sometimes other liquid assets like shares.

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