Trading Basics
Credit Rating
An entities perceived ability to repay its debt. Provided by credit rating agencies. AAA is the best credit rating.
Other Trading Basics
Backwardation
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.
Alerts
Where the broker or a third party sends a notification to a trader that a securities price has hit a certain preset condition.
A useful tool that allows traders to go make a cup of tea.
Start learning
Learn the skills needed to trade the markets on our Trading for Beginners course.
