Trading Basics
ABS
Asset-backed securities.
These are securities backed by assets, like mortgages, which are claimable if the creditor defaults.
Other Trading Basics
Cut and Reverse
When a position is fully reversed and an opposing position taken in a single trade.
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.
At The Money
A term used in options trading where the strike price of the option is similar to the current underlying spot price of the instrument.
Start learning
Learn the skills needed to trade the markets on our Trading for Beginners course.