Trading Basics
Equities
Typically shares or indices of shares. Ordinary shares share the economic gains from a company after debt has been serviced.
Other Trading Basics
Buy Stop
An order type where the trader wishes to go long above the current market price.
Alpha
This is a measure of price performance vs a benchmark.
If a trader makes 10% per annum and the index makes 7% the trader has an alpha of 3%.
Commercial Paper
How big companies finance short-term cash flow.
Like bonds but without the coupon, instead, the APR is determined by the discount the agreements are entered into and the length of time to repayment.
For example, a blue chip company might borrow $9.95m dollars today and repay $10m in a month’s time.
Start learning
Learn the skills needed to trade the markets on our Trading for Beginners course.
