Trading Basics
Capital Gains Tax
Also, CGT.
A tax on the profits obtained from a capital investment or transaction.
Other Trading Basics
Backwardation
Backwardation occurs when a bid price exceeds the ask price.
This usually occurs when stock is suspended or under a share repurchase scheme.
It can also mean that a futures contract will trade at a higher price when it is coming close to expiring.
The opposite of backwardation is known as contango.
Bank of England
The UK’s central bank responsible for setting interest rates for Sterling and maintaining stability in the UK’s financial industry.
Cut and Reverse
When a position is fully reversed and an opposing position taken in a single trade.
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Learn the skills needed to trade the markets on our Trading for Beginners course.
