Trading Basics
GFD
An order type that is ‘Good For the Day’. If not filled it will expire at the end of the trading day.
Other Trading Basics
Contango
This is when the futures price of a security is above the cash price at maturity. The opposite is backwardation.
Cost of Carry
The cost to a trader of maintaining a position. This might be in form of overnight financing on simple CFD trades but can also include the costs to insure, transport or finance on more complex trades.
ADR
American Depositary Receipts or ADRs. These are shares of foreign companies listed on exchanges in the USA in dollars.
They allow US investors to get access to overseas shares without the hassle of having to exchange currency, open brokerage accounts overseas and so on.
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Learn the skills needed to trade the markets on our Trading for Beginners course.
