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
Annuity
A guaranteed income for the rest of someones life.
Historically purchased with pension lump sums.
The buyer is swaping cash now for future income.
Credit Rating
An entities perceived ability to repay its debt. Provided by credit rating agencies. AAA is the best credit rating.
Available Margin
The amount of margin a trader has available to trade with.
This is account balance minus margin used on open positions.
Start learning now
Learn the skills needed to trade the markets on our Trading for Beginners course.