Trading Basics
Margin Call
When a broker requests additional funds are placed on account to keep positions open.
Other Trading Basics
Alerts
Where the broker or a third party sends a notification to a trader that a securities price has hit a certain preset condition.
A useful tool that allows traders to go make a cup of tea.
Backwardation
Backwardation occurs when a bid price exceeds the ask price.
This usually occurs when stock is suspended or under a share repurchase scheme.
It can also mean that a futures contract will trade at a higher price when it is coming close to expiring.
The opposite of backwardation is known as contango.
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Learn the skills needed to trade the markets on our Trading for Beginners course.