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
Candlestick Chart
A type of chart using a security’s opening, closing, high and low price for a particular period.
What is a Central Bank
A central bank or monetary authority is a monopolised and often nationalised institution given privileged control over the production and distribution of money and credit.
American Option
An option that can get exercised at any time during its life.
European options can only be exercised at the end.
Start learning
Learn the skills needed to trade the markets on our Trading for Beginners course.
