Trading Basics
Dividend
A dividend is a variable payment from a company to its shareholders. We touch on dividends here.
Other Trading Basics
Bear Market
A Bear Market occurs when the price of a security is falling, and the negative outlook of the security causes the security’s price to continue to fall, causing a self-sustaining problem.
For a downturn like this to be officially considered a bear market, it must be on-going for longer than two months, otherwise it is known as a correction.
Bears are generally traders with a pessimistic view on markets that look to profit from a decline in prices.
CFD
Contract for difference.
An OTC financial derivative where the counterparties agree to exchange the change in a price.
No underlying assets are exchanged.
Circuit Breaker
When exchanges stop the trading in a security that has fallen significantly.
This is done to stop an uncontrollable panic.
Start learning now
Learn the skills needed to trade the markets on our Trading for Beginners course.