Trading Basics
Currency Cross
The rate to exchange two currencies.
Other Trading Basics
Circuit Breaker
When exchanges stop the trading in a security that has fallen significantly.
This is done to stop an uncontrollable panic.
Bear Market
A Bear Market occurs when the price of a security is falling, and the negative outlook of the security causes the security’s price to continue to fall, causing a self-sustaining problem.
For a downturn like this to be officially considered a bear market, it must be on-going for longer than two months, otherwise it is known as a correction.
Bears are generally traders with a pessimistic view on markets that look to profit from a decline in prices.
Carry Trade
A forex trading strategy of borrowing funds in a low-interest rate currency and buying assets in higher yielding currency.
For years this was selling Yen to buy Dollars.
Start learning
Learn the skills needed to trade the markets on our Trading for Beginners course.
