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

Capital Gains Tax

Also, CGT.

A tax on the profits obtained from a capital investment or transaction.

Contango

This is when the futures price of a security is above the cash price at maturity. The opposite is backwardation.

CFD

Contract for difference.

An OTC financial derivative where the counterparties agree to exchange the change in a price.

No underlying assets are exchanged.

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