Cut and Reverse

Trading Basics

Cut and Reverse

When a position is fully reversed and an opposing position taken in a single trade.

Other Trading Basics

Bear Trap

When a piece of analysis points to the market falling and the price instead goes up, trapping the bears.

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Annuity

A guaranteed income for the rest of someones life.

Historically purchased with pension lump sums.

The buyer is swaping cash now for future income.

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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.

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Start learning

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