Trading Basics
Capital
The economic resource used to buy assets, normally with the view to provide a product or service.
Other Trading Basics
Close to the Money
In options trading when the underlying price of the security is close to the strike price of the option.
Cost of Carry
The cost to a trader of maintaining a position. This might be in form of overnight financing on simple CFD trades but can also include the costs to insure, transport or finance on more complex trades.
Bid
Traders can go short at the bid price.
The terminology is from the broker point of view, they are bidding to buy from you.
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