Trading Basics
Closing Trade
A trade to close a position. Most trading requires the trader to place the opposite trade to that done when opening their position.
This will crystallise the profit or loss.
Other Trading Basics
Alpha
This is a measure of price performance vs a benchmark.
If a trader makes 10% per annum and the index makes 7% the trader has an alpha of 3%.
Assets
Anything that is owned that is expected to generate a return to the owned.
Opposite to a liability.
Blue Chip
Well established, big companies.
A blue chip is an expensive chip on the poker table
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