Trading Basics
Libor
London Interbank Offered Rate. The rate at which banks are happy to lend to each other for 3 months.
Other Trading Basics
Bear Market
A Bear Market occurs when the price of a security is falling, and the negative outlook of the security causes the security’s price to continue to fall, causing a self-sustaining problem.
For a downturn like this to be officially considered a bear market, it must be on-going for longer than two months, otherwise it is known as a correction.
Bears are generally traders with a pessimistic view on markets that look to profit from a decline in prices.
Close A Position
When a trader places a trade to reduce their position to zero.
They are closing their position.
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