Trading Basics
Illiquid
A market without much trade happening, this can result in the price jumping around on small trades. Illiquid markets increase the gapping risk.
Other Trading Basics
Cost of Carry
The cost to a trader of maintaining a position. This might be in form of overnight financing on simple CFD trades but can also include the costs to insure, transport or finance on more complex trades.
Alerts
Where the broker or a third party sends a notification to a trader that a securities price has hit a certain preset condition.
A useful tool that allows traders to go make a cup of tea.
Capital Gains Tax
Also, CGT.
A tax on the profits obtained from a capital investment or transaction.
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Learn the skills needed to trade the markets on our Trading for Beginners course.