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.

This is when the futures price of a security is above the cash price at maturity. The opposite is backwardation.

The amount of money staked per point of price movement.

A forex trading strategy of borrowing funds in a low-interest rate currency and buying assets in higher yielding currency.

For years this was selling Yen to buy Dollars.

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

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