Trading Basics
ABS
Asset-backed securities.
These are securities backed by assets, like mortgages, which are claimable if the creditor defaults.
Other Trading Basics
Balance of Payments
Also BoP. This is the difference between payments into or out of a country. It can be negative or positive and is used by traders in fundamental analysis.
Acquisition
When the majority of shares changes hands in a company.
This is typically when one company buys another.
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.
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Learn the skills needed to trade the markets on our Trading for Beginners course.
