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.

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

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.

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

Learn the skills needed to trade the markets on our Trading for Beginners course.