Trading Basics
Draw Down
The amount the equity balance in a trading account falls by, either in a trade or time period.
Other Trading Basics
Controlled Risk Bet
A trade where the maximum downside is predefined, usually with a guaranteed stop-loss order.
Annuity
A guaranteed income for the rest of someones life.
Historically purchased with pension lump sums.
The buyer is swaping cash now for future income.
ABS
Asset-backed securities.
These are securities backed by assets, like mortgages, which are claimable if the creditor defaults.
Start learning
Learn the skills needed to trade the markets on our Trading for Beginners course.
