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
Black Box Trading
Also referred to as automatic or algorithmic trading.
The trader does not need to see the system in operation, in effect its a black box.
At The Money
A term used in options trading where the strike price of the option is similar to the current underlying spot price of the instrument.
Convertible Stocks
A loan that the owner can convert to ordinary shares in that company, given a set of conditions defined in the original loan.
Start learning now
Learn the skills needed to trade the markets on our Trading for Beginners course.