Trading Basics
Collateral
The resources put up by the trader to enter a trade.
Requested by the counterparty and normally in the form of cash but sometimes other liquid assets like shares.
Other Trading Basics
Balance
A summarised financial result of all funds deposited in, and withdrawn from the customer’s account, and of all closed positions in that account.
Close to the Money
In options trading when the underlying price of the security is close to the strike price of the option.
Bear Trap
When a piece of analysis points to the market falling and the price instead goes up, trapping the bears.
Start learning
Learn the skills needed to trade the markets on our Trading for Beginners course.
