Trading Basics
Capital Gains Tax
Also, CGT.
A tax on the profits obtained from a capital investment or transaction.
Other Trading Basics
Basis Point
A basis point is 0.01% and is typically used when quoting interest rate changes.
A move of 0.25% is described as 25 basis points.
Balance of Trade
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.
Credit Account
For those with excellent credit some brokers will provide a credit account. This means the trader puts up less margin.
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