Credit Limit

Trading Basics

Credit Limit

The amount of credit given to a trader by a broker. Hardly done anymore.

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.

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Collateral

The resources put up by the trader to enter a trade.

Requested by the counterparty and normally in the form of cash but sometimes other liquid assets like shares.

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