Trading Basics

DMA

Direct Market Access. Provides advanced trader direct access to large liquidity providers and exchanges. Bypasses the broker’s pricing.

When a trader goes long a financial instrument they will buy it.

You need at least two parties in a financial transaction, they are counterparties.

Backwardation occurs when a bid price exceeds the ask price.

This usually occurs when stock is suspended or under a share repurchase scheme.

It can also mean that a futures contract will trade at a higher price when it is coming close to expiring.

The opposite of backwardation is known as contango.

Learn the skills needed to trade the markets on our Trading for Beginners course.