Trading Basics
PIT
This was the physical location where traders used to trade. Now largely redundant and replaced with virtual trading.
Other Trading Basics
Cost of Carry
The cost to a trader of maintaining a position. This might be in form of overnight financing on simple CFD trades but can also include the costs to insure, transport or finance on more complex trades.
Basis Point
A basis point is 0.01% and is typically used when quoting interest rate changes.
A move of 0.25% is described as 25 basis points.
Start learning
Learn the skills needed to trade the markets on our Trading for Beginners course.
