Trading Basics
Illiquid
A market without much trade happening, this can result in the price jumping around on small trades. Illiquid markets increase the gapping risk.
Other Trading Basics
What is a Central Bank
A central bank or monetary authority is a monopolised and often nationalised institution given privileged control over the production and distribution of money and credit.
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%.
Chartist
A market participant or commentator that uses charts to analyse the price of a security.
Start learning
Learn the skills needed to trade the markets on our Trading for Beginners course.
