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
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.
Bottom Up Analysis
A form of fundamental analysis which starts with analysis of the individual parts.
Bottom up analysis of an index would involve the analysis of each company in that index.
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Learn the skills needed to trade the markets on our Trading for Beginners course.
