Trading Basics

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.

When companies purchase their own shares.

This reduces the amount of shares issued.

This is a measure of price performance vs a benchmark.

If a trader makes 10% per annum and the index makes 7% the trader has an alpha of 3%.

When bears team up to push the price of a security down, normally by short selling and/or rumours.

This is illegal.

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

[formidable id=11]