Trading Basics
Emerging Markets
Countries with developing economies. Generally considered high risk and high reward.
Other Trading Basics
Bear Market
A Bear Market occurs when the price of a security is falling, and the negative outlook of the security causes the security’s price to continue to fall, causing a self-sustaining problem.
For a downturn like this to be officially considered a bear market, it must be on-going for longer than two months, otherwise it is known as a correction.
Bears are generally traders with a pessimistic view on markets that look to profit from a decline in prices.
Bid
Traders can go short at the bid price.
The terminology is from the broker point of view, they are bidding to buy from you.
CFD
Contract for difference.
An OTC financial derivative where the counterparties agree to exchange the change in a price.
No underlying assets are exchanged.
Start learning
Learn the skills needed to trade the markets on our Trading for Beginners course.
