Alpha

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

Capital

The economic resource used to buy assets, normally with the view to provide a product or service.

Read More »

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.

Read More »

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.

Read More »

Start learning

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