Trading Basics

Day Trader

Someone that trades in a short term time horizon. Typically, not leaving opening positions overnight.

When a trader buys an asset cheaply at the bottom of its fall.

This is when the futures price of a security is above the cash price at maturity. The opposite is backwardation.

A term used by brokers to describe a rapidly moving or thinly traded market.

Depending on the terms and conditions, this allows brokers to examine and possibly change trades placed during these conditions.

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