Trading Basics
Dividend Adjustment
An adjustment made to an equity derivative to reflect a dividend in the underlying. Typically this is offset by a change in price from the underlying moving to reflect the payment.
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.
ADR
American Depositary Receipts or ADRs. These are shares of foreign companies listed on exchanges in the USA in dollars.
They allow US investors to get access to overseas shares without the hassle of having to exchange currency, open brokerage accounts overseas and so on.
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Learn the skills needed to trade the markets on our Trading for Beginners course.
