Collateral

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

Cash or Spot Market

Also known as a spot market, cash markets are different to futures contracts, as commodities are traded immediately for cash at the current market price.

Read More »

ASX 200

A term used for the index of the top 200 shares on the Australian Securities Exchange, also AUS 200.

Read More »

Bid-Ask Spread

The difference between the price the trader and buy at and the price they can sell at.

Also bid-offer spread. The wider the spread, the more the trader pays, reactively.

Read More »

Start learning

Learn the skills needed to trade the markets on our Trading for Beginners course.