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.

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%.

For those with excellent credit some brokers will provide a credit account. This means the trader puts up less margin.

The interest rate that the central bank of a country sets for retail banks.

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