Demo Account

Trading Basics

Demo Account

A broker’s practice account. Does not use real funds.

Other Trading Basics

Cable

Another name for the GBP – USD exchange.

Around half a trillion dollars is traded between the two currencies everyday, making it the third most popular currency pair to trade in behind EUR – USD and USD – JPY.

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Carry Trade

A forex trading strategy of borrowing funds in a low-interest rate currency and buying assets in higher yielding currency.

For years this was selling Yen to buy Dollars.

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Asset Classes

Types of asset that have similar characteristics.

There are four broad classes: Equities, Foreign Exchange, Debt and Commodities.

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