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
Credit Rating
An entities perceived ability to repay its debt. Provided by credit rating agencies. AAA is the best credit rating.
Bottom Up Analysis
A form of fundamental analysis which starts with analysis of the individual parts.
Bottom up analysis of an index would involve the analysis of each company in that index.
Bid-Ask Spread
The difference between the price the trader and buy at and the price they can sell at.
Also bid-offer spread. The wider the spread, the more the trader pays, reactively.
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Learn the skills needed to trade the markets on our Trading for Beginners course.
