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
Book Value
A valuation of something using its net assets on the balance sheet.
A very rough way of valuing an asset because it ignores the intangibles.
Arbirtage
Simultaneously buying and selling a security at two different prices in two different markets, with the aim of making a profit without the risk of prices fluctuating.
Start learning
Learn the skills needed to trade the markets on our Trading for Beginners course.
