Trading Basics
Dealer
Normally a company or person traders go to buy or sell securities from.
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.
Counterparty
You need at least two parties in a financial transaction, they are counterparties.
What is a Central Bank
A central bank or monetary authority is a monopolised and often nationalised institution given privileged control over the production and distribution of money and credit.
Start learning
Learn the skills needed to trade the markets on our Trading for Beginners course.