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.

A security’s last price in a trading period.

The ask price is the level at which a seller is willing to accept a bid on a security.

The ask price is always higher than the bid price.

Also known as the offer price.

An approach to trading where traders take the opposite view and therefore the position of the retail participants in a market.

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