Trading Basics
Cyclical Shares
Equities that follow the economic cycle. For example banking shares typically rise and fall with a cycle.
Other Trading Basics
Cash or Spot Market
Also known as a spot market, cash markets are different to futures contracts, as commodities are traded immediately for cash at the current market price.
Automated Trading
Where the buying and selling of securities is automated and driven by algorithms.
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.
Start learning
Learn the skills needed to trade the markets on our Trading for Beginners course.
