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