Trading Basics

ABS

Asset-backed securities.

These are securities backed by assets, like mortgages, which are claimable if the creditor defaults.

A confirmation from a broker that a trade has been placed.

Backwardation occurs when a bid price exceeds the ask price.

This usually occurs when stock is suspended or under a share repurchase scheme.

It can also mean that a futures contract will trade at a higher price when it is coming close to expiring.

The opposite of backwardation is known as contango.

The length of time a contract is open until it expires.

Learn the skills needed to trade the markets on our Trading for Beginners course.