Trading Basics
PIT
This was the physical location where traders used to trade. Now largely redundant and replaced with virtual trading.
Other Trading Basics
Closing Trade
A trade to close a position. Most trading requires the trader to place the opposite trade to that done when opening their position.
This will crystallise the profit or loss.
Bid-Ask Spread
The difference between the price the trader and buy at and the price they can sell at.
Also bid-offer spread. The wider the spread, the more the trader pays, reactively.
What is a Central Bank
A central bank or monetary authority is a monopolised and often nationalised institution given privileged control over the production and distribution of money and credit.
Start learning
Learn the skills needed to trade the markets on our Trading for Beginners course.
