Trading Basics
Contango
This is when the futures price of a security is above the cash price at maturity. The opposite is backwardation.
Other Trading Basics
ADR
American Depositary Receipts or ADRs. These are shares of foreign companies listed on exchanges in the USA in dollars.
They allow US investors to get access to overseas shares without the hassle of having to exchange currency, open brokerage accounts overseas and so on.
Close to the Money
In options trading when the underlying price of the security is close to the strike price of the option.
Start learning
Learn the skills needed to trade the markets on our Trading for Beginners course.
