Trading Basics

Eurodollars

Dollar denominated deposits held outside the US, and thus outside the control of the US federal reserve. These deposits don’t have to be held in the euro area.

Other Trading Basics

Closing Price

A security’s last price in a trading period.

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%.

Breakdown

Occurs when a price ‘breaks down’ below a support area.

Start learning

Learn the skills needed to trade the markets on our Trading for Beginners course.