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 of Payments
Also BoP. This is the difference between payments into or out of a country. It can be negative or positive and is used by traders in fundamental analysis.
Bottom Up Analysis
A form of fundamental analysis which starts with analysis of the individual parts.
Bottom up analysis of an index would involve the analysis of each company in that index.
Assets
Anything that is owned that is expected to generate a return to the owned.
Opposite to a liability.
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Learn the skills needed to trade the markets on our Trading for Beginners course.
