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
Book Building
When a new share is issued book building is the process institutions go through to gauge demand and therefore price.
This goes on before the share is available to trade on the exchange.
Arbirtage
Simultaneously buying and selling a security at two different prices in two different markets, with the aim of making a profit without the risk of prices fluctuating.
Cut and Reverse
When a position is fully reversed and an opposing position taken in a single trade.
Start learning
Learn the skills needed to trade the markets on our Trading for Beginners course.
