Trading Basics
Corporate Action
An event that requires approval or notification of the shareholders of a business. Paying dividend or a rights issue are corporate actions.
Other Trading Basics
Backwardation
Backwardation occurs when a bid price exceeds the ask price.
This usually occurs when stock is suspended or under a share repurchase scheme.
It can also mean that a futures contract will trade at a higher price when it is coming close to expiring.
The opposite of backwardation is known as contango.
Currency Options
A option is the right to buy or sell something in the future but not the obligation. A currency option is on an FX market.
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