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.

Other Trading Basics

Controlled Risk Bet

A trade where the maximum downside is predefined, usually with a guaranteed stop-loss order.

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.

Capital

The economic resource used to buy assets, normally with the view to provide a product or service.

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