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.
Balance of Trade
Also BoT. This is the difference between trade into or out of a country.
Experts and imports. It can be negative or positive and is used by traders in fundamental analysis.
Book Building
When a new share is issued book building is the process institutions go through to gauge demand and therefore price.
This goes on before the share is available to trade on the exchange.
Start learning now
Learn the skills needed to trade the markets on our Trading for Beginners course.
