Trading Basics
American Option
An option that can get exercised at any time during its life.
European options can only be exercised at the end.
Other 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%.
Close A Position
When a trader places a trade to reduce their position to zero.
They are closing their position.
ASX 200
A term used for the index of the top 200 shares on the Australian Securities Exchange, also AUS 200.
Start learning
Learn the skills needed to trade the markets on our Trading for Beginners course.
