Trading Basics
Book Building
When a new share is issued book building is the process institutions go through to gauge demand and therefore price.
This goes on before the share is available to trade on the exchange.
Other Trading Basics
Binary Bet
A binary bet offers a win or loss outcome, nothing in between.
Binary options are now banned in the EU.
Collateral
The resources put up by the trader to enter a trade.
Requested by the counterparty and normally in the form of cash but sometimes other liquid assets like shares.
Cable
Another name for the GBP – USD exchange.
Around half a trillion dollars is traded between the two currencies everyday, making it the third most popular currency pair to trade in behind EUR – USD and USD – JPY.
Start learning
Learn the skills needed to trade the markets on our Trading for Beginners course.
