Trading Basics
Balance of Payments
Also BoP. This is the difference between payments into or out of a country. It can be negative or positive and is used by traders in fundamental analysis.
Other Trading Basics
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.
Backwardation
Backwardation occurs when a bid price exceeds the ask price.
This usually occurs when stock is suspended or under a share repurchase scheme.
It can also mean that a futures contract will trade at a higher price when it is coming close to expiring.
The opposite of backwardation is known as contango.
Chartist
A market participant or commentator that uses charts to analyse the price of a security.
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