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.

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.

The net assets of a traders account.

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.

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

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