Trading Basics
EDSP
Exchange Delivery Settlement Price. The price at which an exchange settles a derivative, like a future.
Other Trading Basics
Commission
A charge levied on a client to place trades in certain asset types. FX and CFD trading attracts commission.
Black Box Trading
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.
Backwardation
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.
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Learn the skills needed to trade the markets on our Trading for Beginners course.
