Bottom Fishing

Trading Basics

Bottom Fishing

When a trader buys an asset cheaply at the bottom of its fall.

Other Trading Basics

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.

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Book Value

A valuation of something using its net assets on the balance sheet.

A very rough way of valuing an asset because it ignores the intangibles.

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