Trading Basics
Alpha
This is a measure of price performance vs a benchmark.
If a trader makes 10% per annum and the index makes 7% the trader has an alpha of 3%.
Other Trading Basics
CFD
Contract for difference.
An OTC financial derivative where the counterparties agree to exchange the change in a price.
No underlying assets are exchanged.
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.
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