Trading Basics

Bottom Up Analysis

A form of fundamental analysis which starts with analysis of the individual parts.

Bottom up analysis of an index would involve the analysis of each company in that index.

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%.

Also BoT. This is the difference between trade into or out of a country.

Experts and imports. It can be negative or positive and is used by traders in fundamental analysis.

This refers to a traders account with their broker.

It is a register of their completed transactions, balances and orders.

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