Trading Basics

Draw Down

The amount the equity balance in a trading account falls by, either in a trade or time period.

In options trading when the underlying price of the security is close to the strike price of the option.

When a trader buys an asset cheaply at the bottom of its fall.

Also referred to as automatic or algorithmic trading.

The trader does not need to see the system in operation, in effect its a black box.

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

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