Trading Basics
Dutch Auction
An auction process where the price starts high and is gradually lowed. Very useful when auctioning bond issues.
Other Trading Basics
ABS
Asset-backed securities.
These are securities backed by assets, like mortgages, which are claimable if the creditor defaults.
Controlled Risk Bet
A trade where the maximum downside is predefined, usually with a guaranteed stop-loss order.
Close A Position
When a trader places a trade to reduce their position to zero.
They are closing their position.
Start learning
Learn the skills needed to trade the markets on our Trading for Beginners course.