Balance of Trade

Trading Basics

Balance of Trade

Also BoT. This is the difference between trade into or out of a country.

Experts and imports. It can be negative or positive and is used by traders in fundamental analysis.

Other Trading Basics

Bear Trap

When a piece of analysis points to the market falling and the price instead goes up, trapping the bears.

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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.

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Call

An option that gives the purchaser the right, but not the obligation, to buy a security at a certain price.

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