Debt

Trading Basics

Debt

A form of capital funding where there is an obligation to repay what is borrowed, normally with interest.

Other Trading Basics

Bid-Ask Spread

The difference between the price the trader and buy at and the price they can sell at.

Also bid-offer spread. The wider the spread, the more the trader pays, reactively.

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Commodities

A commodity is a basic good where the quality of the product won’t differ depending on where it’s sourced.

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Contango

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

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