Trading Basics
CFD
Contract for difference.
An OTC financial derivative where the counterparties agree to exchange the change in a price.
No underlying assets are exchanged.
Other Trading Basics
Commodities
A commodity is a basic good where the quality of the product won’t differ depending on where it’s sourced.
Ask Price
The ask price is the level at which a seller is willing to accept a bid on a security.
The ask price is always higher than the bid price.
Also known as the offer price.
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.
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Learn the skills needed to trade the markets on our Trading for Beginners course.
