Trading Basics
Head and Shoulders
A complex price pattern that forms in an uptrend and suggests a reversal.
Other Trading Basics
Abnormal Market Conditions
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.
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.
Call
An option that gives the purchaser the right, but not the obligation, to buy a security at a certain price.
Start learning
Learn the skills needed to trade the markets on our Trading for Beginners course.