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
Cut and Reverse
When a position is fully reversed and an opposing position taken in a single trade.
Credit Rating
An entities perceived ability to repay its debt. Provided by credit rating agencies. AAA is the best credit rating.
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.
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