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