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.

A term used by brokers to describe a rapidly moving or thinly traded market.

Depending on the terms and conditions, this allows brokers to examine and possibly change trades placed during these conditions.

When bears team up to push the price of a security down, normally by short selling and/or rumours.

This is illegal.

Anything that is owned that is expected to generate a return to the owned.

Opposite to a liability.

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