Trading Basics

European Session

07:00 to 16:00 London time.

A term used by brokers to describe a rapidly moving or thinly traded market.

Depending on the terms and conditions, this allows brokers to examine and possibly change trades placed during these conditions.

Person, or organisation that uses arbitrage as a strategy.

Backwardation occurs when a bid price exceeds the ask price.

This usually occurs when stock is suspended or under a share repurchase scheme.

It can also mean that a futures contract will trade at a higher price when it is coming close to expiring.

The opposite of backwardation is known as contango.

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

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