Trading Basics
Bear Trap
When a piece of analysis points to the market falling and the price instead goes up, trapping the bears.
Other Trading Basics
CFD
Contract for difference.
An OTC financial derivative where the counterparties agree to exchange the change in a price.
No underlying assets are exchanged.
Close A Position
When a trader places a trade to reduce their position to zero.
They are closing their position.
ABS
Asset-backed securities.
These are securities backed by assets, like mortgages, which are claimable if the creditor defaults.
Start learning
Learn the skills needed to trade the markets on our Trading for Beginners course.