Trading Basics
Cost of Carry
The cost to a trader of maintaining a position. This might be in form of overnight financing on simple CFD trades but can also include the costs to insure, transport or finance on more complex trades.
Other Trading Basics
Contango
This is when the futures price of a security is above the cash price at maturity. The opposite is backwardation.
Closing Trade
A trade to close a position. Most trading requires the trader to place the opposite trade to that done when opening their position.
This will crystallise the profit or loss.
Asset Classes
Types of asset that have similar characteristics.
There are four broad classes: Equities, Foreign Exchange, Debt and Commodities.
Start learning
Learn the skills needed to trade the markets on our Trading for Beginners course.
