Trading Basics

Breakdown

Occurs when a price ‘breaks down’ below a support area.

This is when the futures price of a security is above the cash price at maturity. The opposite is backwardation.

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.

The interest payment on a bond.

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