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.
ASX 200
A term used for the index of the top 200 shares on the Australian Securities Exchange, also AUS 200.
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.
Start learning
Learn the skills needed to trade the markets on our Trading for Beginners course.